Opinion: Wyoming's new encrypted banking law may weaken New York's BitLicense

Team members who drafted 13 encryption-friendly laws promulgated this year in the Western States said there is a way for cryptocurrency companies to bypass the hard-to-get BitLicense, which runs through Wyoming. One of the laws allows Wyoming to set up special purpose depository institutions (SPDIs), a new type of full-reserve currency bank that can also host cryptographic assets. Wyoming advocates say that with SPDI, encrypted exchanges and other startups can operate in New York without having to comply with New York state licensing rules, and the legal principles are the same as those for banks that do not require a state currency sender license.