Most US states have adopted some regulatory stance in regards to cryptocurrencies like bitcoin and the blockchain technologies behind them, according to a report by the Brookings Institution. The study classifies jurisdictions according to their attitude towards digital currencies and the levels of engagement with the underlying technology.
Two Waves of Regulations in Four Years
State governments are at various stages of implementation of crypto and blockchain technologies. Some of them have not yet introduced regulatory regimes to take full advantage of them. Most, however, have shown interest in leveraging these technologies to stimulate local economies and improve public services. The authors have identified two waves of new crypto-related regulations in the last several years.
The first wave started in 2014, with more than 20 states adopting relevant legislation. At that first stage, authorities in at least 10 states, like California and New Mexico, issued warnings about investing in cryptocurrencies. The second one came in the last two years when a large group of states started exploring the potential implementation of blockchain technologies in the public and the private sector.
One of these states is Colorado, where a cautionary approach has led to the adoption of a bipartisan bill promoting the use of blockchain for government record keeping. Wyoming has been mentioned as a state seeking broader impact on the state economy. Recently, its legislature passed a bill exempting cryptocurrencies from property taxation, as news.Bitcoin.com reported. The state has been praised for becoming the most crypto-friendly jurisdiction in the country.
Two other states have taken steps to legalize bitcoin as a payment option for taxation purposes. Arizona has promised to become the first US state to start accepting taxes in cryptocurrency. Several bills recognizing cryptos as currencies have been making their way in the state legislature. Two of them regulate income tax payments with cryptos. Georgia may also provide its residents with the option to pay taxes in bitcoin. A draft that allows digital currency payments for tax obligations and licensure fees has been filed in the senate.