Wyoming Passes Law That Allows Insurance Firms to Invest in Cryptocurrencies

Wyoming authorities have amended the state’s insurance law to make it possible for insurance firms to invest in cryptocurrencies like Bitcoin (BTC). 

April 16, 2020 | AtoZ Markets – The U.S. state of Wyoming has amended its insurance law to allow domestic insurance companies to invest in different cryptocurrencies such as bitcoin. However, the new law will come into effect from July 1.

Wyoming amendment law allows cryptocurrencies investment as from July

The U.S. state of Wyoming passed the amendment last month, and it will come into effect from July, according to information from the Wyoming State Legislature, the legislative branch of the state.

Related: New Wyoming Crypto Custody Regulations You Should Know

The new law states that an insurance company might invest in “digital assets, as defined by W.S. 34‑29‑101(a) (i) and excluding digital consumer assets as defined by W.S. 34-29-101(a) (ii).” The state law also defines digital assets as “a representation of economic, proprietary or access rights that are stored in a computer-readable format, and includes digital consumer assets, digital securities, and virtual currency,”

“The first provision of its kind in the nation”

U.S.-based law firm Kramer Levin believes that the amendment is apparently the first provision of its kind in the country. However, whether insurance companies take advantage of this law remains to be seen, the firm added. Kramer Levin further said that this is because insurance companies are traditionally conservative with their investment portfolios, and investing in cryptocurrencies such as bitcoin is not in their portfolios. 

Wyoming is a crypto and blockchain-friendly state

The U.S. state of Wyoming is one of the most crypto and blockchain-friendly state in the country. Over the past couple of years, Wyoming has passed a series of laws, including recognizing cryptocurrency as money. Wyoming state has also allowed favorable tax treatment of crypto, among several other measures.

Related: Wyoming gives Cryptocurrencies Fiat money status

CEO of Wyoming-based crypto bank Avanti, Caitlin Long, said that most likely insurance companies would offer crypto investment as part of variable life policies rather than whole life since the NAIC capital charge will be high. With the new law passed, Wyoming continues to remain one of the most crypto and blockchain-friendly states in the U.S.  

Will other states follow in Wyoming’s footsteps? Share your thoughts below!

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