As per a report by the Brookings Institution, most states in the U.S. have adopted a regulatory standpoint with regards to crypto currency and block chain technology. Jurisdictions have been classified in the study based on their approach to digital currencies and their engagement levels with the underlying technology.
The implementation of crypto and block chain technology is at varied stages at the State Governments. Some haven’t begun any regulatory regimes while others are already leveraging the technology to stimulate their economies. There has been a ripple of 2 types in the past few years within the different states of the U.S.
Embracing Relevant Legislation: The first stage began in the year 2014 when more than 20 states applied legislation’s regarding crypto and block chain currency technology but took a cautionary approach by issuing warnings regarding cryptocurrency investments.
Block chain technology in the Public and Private Sector: In the second stage, a large number of States began to explore the possible administration of block chain technology in the public and private sector. An example of a state that went from one stage to the next is Colorado. This states use of the cautionary approach has led to a bipartisan bill for government record keeping. Another great example is of the state Wyoming that has been labelled the most crypto-friendly state in the US. Wyoming has passed a bill that exempts crypto currencies from property taxation.
A few other states have begun legislation’s to make bitcoin an accepted payment method for taxation. Arizona has promised to become the first US state to start accepting taxes in cryptocurrency and Georgia may provide its residents with the option to pay their taxes in the form of bitcoin.
Therefore, be it through passing legislation’s or implementing new tax payment policies, most states in the US have realized the potential impact that cryptocurrency and block chain technology will have in stimulating their economies.