- The crypto and blockchain-friendly state of Wyoming just amended its insurance code.
- The new changes allow insurance firms to invest in crypto, and will come into effect on July 1st.
- Insurers would likely avoid crypto if not for the fact that traditional markets currently see high volatility.
The US state of Wyoming has recently come up with a new law that will allow insurance firms to invest in digital assets. The new changes to its insurance code will, of course, only include the firms operating within the state. However, as the popularity of Bitcoin continues to spread, others may eventually follow in its footsteps.
The state defines cryptocurrencies to allow investments
The new amendment will come into effect in only a few months, on July 1st. Once it arrives, it will allow insurers to 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 of Wyoming sees digital assets as a representation of proprietary, economic, or access rights. This representation exists in a computer-readable format. Also, it includes digital consumer assets, virtual currency, and digital securities. This, of course, also includes cryptocurrencies such as Bitcoin.
The law further defines cryptos as digital assets that serve as a medium of exchange, a store of value, or a unit of account. It also defines them as assets that are not recognized as legal tender by the US government.
This is where the new law enters, allowing insurance firms to invest in digital consumer assets. The law defines digital consumer assets as assets that are ‘used or bought primarily for consumptive, personal or household purposes.’
Firms might go for crypto due to traditional markets’ volatility
But, regardless of how the state defined the coins, this still represents a major move, especially coming from the US state. One of the country’s law firms, Kramer Levin, spoke of the amendment after its…