Although both states are in America, there is a competition for bitcoin leadership between Wyoming and Texas. The state of Wyoming is fighting for leadership in the adoption of cryptocurrency and blockchain technology.
The cryptocurrency and blockchain industry is growing, and its growth has brought both positive and negative consequences. The industry has uplifted billionaires, but it has also degraded billionaires, according to CoinIdol, a world blockchain news outlet.
As a result, more institutions are gaining interest. Competition in the crypto and blockchain industry is cutthroat. Most governments have recently enacted regulations that guide crypto and blockchain ventures, while others have made independent cryptocurrencies their national currencies. Central banks in some countries are exploring Central Bank Digital Currencies (CBDCs), a digital form of their fiat money.
American states are actively exploring the blockchain and crypto industry, as evidenced by the rapid rise of crypto and blockchain regulations. Many states want to be recognized not only for bringing crypto and blockchain to America, but also for championing their growth.
California passed a law allowing digital currency trading in 2014, and Silicon Valley is home to prominent crypto-focused companies like Ripple, Kraken, and Coinbase. Kentucky passed a law in March that provides sales and use tax breaks for crypto miners to retain tech companies and attract investment. Colorado is a crypto-friendly state that signed the Colorado Digital Token Act, which exempts cryptocurrencies from some security regulations and has proposed Colorado College to explore blockchain technology in water and waste management.
In the Midwest, Ohio has recognized blockchain technology and is using it to manage records, such as processing birth and death records. In addition, businesses in Ohio can pay many taxes, including employee withholding taxes, in cryptocurrencies.
In the southern US, Tennessee has legally recognized blockchain and smart contracts. Jacksonville is exploring the possibility of paying employees in bitcoin, while bitcoin mining is conducive in the southern state. Tennessee is also home to Bitmain, one of the largest crypto mining companies in the world.
Although every American state is throwing its hat in the ring to become a crypto capital, the competition is mainly between Texas and Wyoming.
Texas was the first state to pass a memorandum stating that no money transmitter license is required to sell crypto and other digital currencies in Texas. Texas also allows state-chartered banks to offer crypto custody to crypto customers.
Wyoming is known for its crypto-friendliness, having passed more than a dozen bills aimed at welcoming cryptocurrencies and blockchain mining. The state Senator, Cynthia Lummis, was one of the few senators to recently challenge President Joe Biden's $1.2 trillion infrastructure bill, which imposed some "unworkable" reporting requirements on crypto brokers to the Internal Revenue Service.
Based on the situation on the ground, Wyoming is currently the crypto capital of the United States, not only because "Bitcoin Senator" Cynthia Lummis is from Cheyenne, but also because of the way legislation in the state works for crypto enthusiasts and investors. The latest legislation is aimed at fast-tracking approvals for crypto banks that want to operate in Wyoming. So far, the state of Wyoming has passed 26 bills aimed at encouraging crypto and blockchain investment. All crypto investors in Wyoming are not subject to personal income tax.
Wyoming is proud to make America's legislative history. In 1977, Wyoming passed a law allowing the formation of limited liability companies (LLCs), making it the first state in America to do so. The state was also the first to pass a law allowing women to vote. In comparison, Texas is just now catching up in crypto and blockchain legislation after its governor Greg Abbott recently signed the Virtual Currencies Act recognizing the status of cryptocurrencies, second only to Wyoming.
In addition, Wyoming is known for its cheap energy, which is favorable for crypto miners. The average residential electricity rate in Wyoming is 9.85¢/kWh, while the national average is 11.88¢/kWh. In contrast, the average residential electricity price in Texas is 11.96¢/kWh. Wyoming State Senator, Cynthia Lummis, also gave a thumbs up to stranded miners who left China and were seen flooding into Texas.
In terms of internet, Wyoming is the 41st connected state. 88% of the population has access to broadband internet. The state is also a data center for most of America's largest tech companies, including Microsoft. On the other hand, Texas is the 45th most connected state in America, just behind Wyoming.
American states are vying with each other to become the country's crypto hub, but the competition is closer between Wyoming and Texas. As states rapidly adopt cryptocurrencies, Wyoming is expected to be the crypto hub, but that's a stretch. Wyoming's leadership in cryptocurrencies is attributed to its friendly legislature, cheap energy, and rapidly growing internet infrastructure.