When award-winning blockchain development company BlockCrushr Labs had to choose a new location for its headquarters, it could have chosen a crypto-friendly jurisdiction…
Like Estonia, a country committed to blockchain development.
Or Malta, which levies no taxes on certain crypto token models.
Or Singapore, which blockchain research firm Applicature chose as the world’s most attractive place to launch initial coin offerings (ICOs).
Yet, when the two-year-old company outgrew its Halifax, Canada headquarters… it chose to set up shop in Cheyenne, Wyoming.
Here’s what CEO Scott Burke said last month about his company’s move to Cheyenne:
Wyoming is one of the best places in the U.S. to do business. Between low startup costs, the most business-friendly tax system in the country, and lawmakers who are focused on supporting and fostering the growth of innovative fintech business and technology, Wyoming just makes sense.
When most people think of Wyoming, they probably see coal mines and cattle ranches, not a bustling tech hub.
But over the past few months, Wyoming has attracted two or three new crypto startups—per day. That’s because the state has some of the most crypto-friendly laws in the nation.
I expect other states will copy Wyoming’s legislation… and roll out the welcome mat for blockchain companies.
This is great news for the blockchain industry and investors in blockchain technology.
Last month, Wyoming’s legislature passed five bills to attract cryptocurrency and blockchain companies to the state.
Two of them really caught our eyes.
One law exempts cryptocurrency miners and developers from state taxes (with certain caveats). Another exempts some types of digital tokens from state securities regulation (U.S. Securities and Exchange Commission, take note).
These laws are already attracting blockchain startups.
Charles Dusek is the co-founder of NODE Haven. His firm plans to launch a $50 million ICO this year. But his lawyers suggested he hold the ICO outside of the country because of Byzantine regulations across the U.S.
However, Dusek decided to register in Wyoming because the state’s new crypto laws “lowers our risk.” And now he’s recommending that other ICOs register in the state, too.
James Row is a managing partner for Entoro Capital in Houston. He registered a new blockchain finance company in Wyoming soon after the laws changed.
“It’s cheaper and easier from a corporate filing perspective,” Row told Bloomberg. “Wyoming is proving that it’s being pro-business and anti-bureaucracy.”
This is just the latest sign that Wyoming is becoming a haven for crypto startups.
Other States Will Follow Wyoming’s Lead
Wyoming is a trailblazer in the crypto space. The state even plans to put some of its administrative systems on the blockchain.
North Dakota and New Hampshire are already consulting Wyoming about passing their own cryptocurrency laws.
This is just the start of a larger trend. States are finally recognizing the potential of blockchain businesses and adjusting their laws accordingly.
They won’t sit idly by as this growing industry moves offshore. One by one, they’ll pass their own crypto-friendly laws… or they’ll miss the party altogether.
Eventually, the federal government will follow. The IRS and the SEC are still dragging their feet when it comes to cryptocurrencies. But I predict they’ll learn from the states and create reasonable regulations for cryptos.
New crypto-friendly laws will continue to fuel what PBRG guru Teeka Tiwari calls the Second Boom.
Teeka says the Second Boom is when big institutions like hedge funds and pension plans flood the space with trillions in capital.
Legislative uncertainty is one of the reasons big money funds have waited to get into the crypto space. But with more crypto-friendly legislation on the way, there will be one less reason to delay investment.
That’s great news for token holders and blockchain investors.
Nick Rokke, CFA
Analyst, The Palm Beach Daily
P.S. If Wyoming continues to attract blockchain companies, Cheyenne could join that list of fast-growing cities on our real estate watch list.
Has your state passed crypto-friendly legislation? Let us know right here…
From Jackson S.: I initially became a PBRG Infinity member because of your Legacy portfolio. You have now dumped that investment strategy… And as best as I can tell, you just focus on cryptocurrencies and related investments. Is there any reason that I should continue reading your publications?
Nick’s Reply: Thanks for being a valued Infinity member, Jackson.
Sure, we’ve spent a lot of time researching cryptocurrencies. And it’s been time well spent.
If you put $500 each in bitcoin and ether when world-renowned crypto expert Teeka Tiwari recommended them in April 2016, it’d be worth a total of $31,950 today. No one else in this business can boast that kind of track record.
But we haven’t neglected our PBRG mission. Our goal is to help you achieve a comfortable and dignified retirement through proper asset allocation. Setting aside a small portion of your portfolio to cryptocurrencies is part of that plan.
If you’re looking for safe, conservative, income-generating investments, look no further than The Palm Beach Letter.
Teeka has been scooping up fundamentally sound, cheap stocks with large yields. Since 2016, his strategy has averaged realized gains of 18.4%, which beats the S&P 500 by 3.2% during that span. And the average yields are more than 300% greater than the S&P 500’s.
As an Infinity subscriber, you have access to our other services, including Palm Beach Income. Year-to-date, analyst William Mikula has closed 15 trades and banked 27.2% average annualized returns using his safe options strategy.
You can also find money-making opportunities every day in the Daily. Just last week, we showed you how to diversify your portfolio in five days… including how to invest in short-term U.S. bonds and how to take part in the biggest stock buybacks in history.
You can also follow my Elite 25 portfolio in the Daily. These elite companies returned 21.6% per year over the past two decades. The S&P 500 returned only 7.4% (including dividends) during the same span. You can follow the portfolio every month for free. (You can also read the special report right here.)
The Daily is chock-full of profitable ideas. And best of all, it just takes five minutes of your time each morning to read about them.
On top of that, we expect to announce some exciting new services soon. As a valued Infinity member, you’ll have access to them as well.
So why should you continue to read our publications?
At PBRG, we guide you along the path to real, sustained financial prosperity. We do that by giving you a comprehensive wealth-building strategy. It’s a time-tested approach you won’t find anywhere else.
Are you following our asset allocation model? Let us know how it is working out for you right here…
America’s No. 1 independent research company has completed its explosive investigation… And it’s found a buried clause in the new tax bill that could hand you $50,000 or more in 2018…
This has nothing to do with income taxes, estate taxes, or special deductions.
In fact, this section of the tax bill—located on page 553—has been completely overlooked by accountants. Even though it creates a potential $460 billion windfall for everyday Americans…