on the crypto
It took two years to build the proper infrastructure, but on September 16 the Wyoming banking division finally reached a major milestone. On that day, Kraken Financial became the first entity to receive the title of a special purpose depository institution (SPDI). It is also the first newly established (de novo) bank approved by the state since 2006.
Wyoming is a pioneer of the crypto sector
While Kraken Financial still has a few hurdles to overcome before it has a valid certificate to trade, Wyoming is racing to maintain its lead in the digital asset space.
And it's a priority shared by the state's highest elected official, Wyoming Governor Mark Gordon. The biggest challenge going forward for state leadership in the blockchain space will be seeing how the federal government responds to the regulatory framework the state is creating, Gordon said.
Wyoming's SPDI stock may still be impacted by future decisions by the US Office of Comptroller of the Currency (OCC) and other decisions made by Congress in response to big projects like Facebook's Libra.
"We don't want to wait for MIT or Facebook to do something," Gordon said. "We really do have an opportunity here." “I'm really grateful that Kraken looked beyond Los Angeles and really understood that a small, business-friendly, great tax environment was the place to bring new innovations,” said Gordon.
The Wyoming Approach
The level of visibility the SPDI title is giving to Wyoming is significant, said Albert Forkner, Wyoming Banking Commissioner. The state does not have the presence of foreign banks and not many branches of other state banks.
Of Wyoming's approximately 30 state-owned banks, most hold assets worth less than $ 1 billion. "If you think of traditional banks, unless you are a niche bank, they all have similar assets," Forkner said.
“These companies have different markets and objectives”. Having more banking options in the space will mean that the Investors and cryptocurrency firms won't have to worry about being less risky in the future, Lane said.
Broader goals
The Wyoming SPDI card could play a role in the state's financial innovation at a time when the state is economically depressed. Gordon said he believes digital assets could play a role in funding environmental sustainability goals.
For example, blockchain could be the best tool for trading carbon credits. “One of the challenges we've seen on the West Coast this year is that energy markets have started to collapse a bit because people have become very possessive,” said Gordon. "There is an opportunity for [blockchain] innovation in a renewable world where you can start selling energy and recovering energy."
