Arizona, Wyoming, and Tennessee are leading with bills or laws that recognize cryptocurrencies legally or facilitate payment of taxes in cryptocurrencies. Many other states are working on regulations that are friendly to cryptocurrencies.
About 20 states in the United States now have a regulation relating to cryptocurrencies since 2014. Many others are aware regarding cryptocurrencies and are either preparing regulations, facilitating blockchain implementation in the government circles, or warning the public against investing in cryptocurrencies.
However, most of the states are still reluctant to adopt meaningful regulation and integrate them with existing regulations to clarify innovation and usage of cryptocurrencies. Even the majority with a regulation ready are in the initial experimental stages.
The report details the few states that are leading in the adoption of cryptocurrencies and blockchain. Arizona is set to be the first state in the United States. Thus, to accept taxes in cryptocurrency in just a couple of years. They have a law that states that a taxpayer can use Bitcoin, Litecoin, and other recognized cryptocurrency gateways. However, that use peer-to-peer systems. However, New Hampshire voted down a similar bill two years ago with concerns that the state would bear responsibility for converting the crypto on volatile markets. This is despite the State Representative Eric Schleien explaining that the conversion would be automatic and thus no costs or risks to bear.
Arizona is also working on another bill to regulate crowdfunding or ICOs. First reading in the House of Representatives will be June 2, 2018, while the second will be July 2. Representative Jeff Weninger is sponsoring the bill.
Wyoming has a bill that exempts cryptocurrencies from assets taxes. This would probably make it one of the best states from where to buy cryptocurrencies. There are several bills already past the committees’ stage and ready for House of Representatives.
Tennessee, on its part, is set to legalize cryptocurrencies and related payments. Already, there is a bill that would officially recognize cryptocurrency financial transactions and smart contracts in the state. Kansas and New Hampshire also have regulations that exempt crypto-related dealings from their money transmitter regulations.
North Dakota is among a few states that have worked on or working on bills concerning cryptocurrencies. Meanwhile, Indiana, Iowa, and Texas are reactionary and consider cryptocurrencies as too risky and have taken a negative stance against them.
On the list of organized states — those who have passed some regulations in relation to cryptocurrencies and blockchain –are Washington and New Hampshire.
Seven states including Vermont are in active engagement in relation to adopting blockchain and cryptocurrencies. They are beyond cryptocurrencies and are considering or examining the use of blockchain for various applications and use cases in government circles. Vermont, for instance, has an application for blockchain data storage and which is admissible in court as valid.
The report also lists states that are recognizing innovation potential and envision a broader role for blockchain in their economies. These include Delaware, Illinois, and Arizona. They have a regulation that could see the application of blockchain in the making signatures, transactions, and contracts. Else it is to allow the use of cryptocurrencies in paying of income tax.
Nevertheless, a number of states including Arkansas and South Dakota do not have any appropriate regulations for cryptocurrencies and blockchain or seem unaware about these developments.
Further, regulation adoption in the U.S. looks like it happened in two waves. The first started in 2014 and a saw more than 20 states adopt the relevant regulation. And at least 10 states warning of crypto investments due to risks. California and New Mexico are two examples of states that gave warnings. The other wave started two years ago and more states added regulation and bills relating to cryptocurrencies and blockchain.