By: Jake DeLeers*
Abstract
The regulation of virtual currency and blockchain technology is an increasingly important yet under-developed area of law. As interest in virtual currency and blockchain continues to increase, so too does the need for regulatory and legislative guidance. Currently, the regulatory landscape in the United States offers no uniform guidance, leaving a cluster of disparate treatment across state borders. In response to the lack of federal guidance, states have taken differing approaches when regulating virtual currency and blockchain technologies. Two of these states are Wyoming and New York.
Wyoming recognized the need for favorable laws for virtual currency and blockchain businesses and enacted several pieces of legislation with the goal of bringing more capital, jobs, and revenue into its economy. In contrast to Wyoming, New York created the BitLicense, which led to many financial technology companies fleeing the state. One attempt to create uniform guidance was made with the creation of the Uniform Regulation of Virtual Currency Businesses Act; however, since its creation in 2017, only one state has enacted the Act. States such as Pennsylvania should learn from Wyoming and New York and adopt favorable virtual currency and blockchain law similar to Wyoming.
This Comment analyzes the benefits and criticisms of Wyoming’s, New York’s, and the Uniform Law Commission’s regulation of virtual currency and blockchain. Pennsylvania has been relatively silent on this topic; therefore, this Comment suggests that Pennsylvania lawmakers recognize direct property rights for virtual currency owners, allow for the creation of a financial technology sandbox, and ensure that individuals and businesses have a safe and legal way to house their digital assets.
*J.D. Candidate, The Pennsylvania State University, Penn State Law, 2022