On June 5, the Nevada State Legislature became the first US state to approve a bill which will block local government entities from taxing Blockchain transactions.
Nevada is often recognized as the “silver state” due to its significant silver resources. It is also famous for being the home to Las Vegas, the city of entertainment. A big chunk of its revenue comes from casinos, and money is valuable in this location. For the first time, the state of Nevada has taken a significant step in paving the way for the continued progress of Bitcoin.
On March 30, Republican Senator Ben Kieckhefer introduced Senate Bill 398 intended to protect Blockchain transactions under the state’s Uniform Electronic Transactions Act.
The bill provides an accurate definition of the Blockchain, stating that it is:
“An electronic record of transactions or other data which is:
- Uniformly ordered;
- redundantly maintained or processed by one or more computers or machines to guarantee the consistency or non-repudiation of the recorded transactions or other data;
- Validated by using cryptography.”
Bitcoin transactions are tax-free
Senate Bill 398, the Blockchain-friendly bill, was introduced by Kieckhefer last March and was approved unanimously by the Senate in April. The move was made right before the moving of the Nevada Assembly in May, whereby it was amended, approved and then turned back to the Senate who confirmed the amendments.
It was then sent to Governor Brian Sandoval whereby it was approved. In regards to the approval, Kieckhefer states:
“The potential uses of Blockchain are limitless, and I’m confident Nevada’s entrepreneurs will find ways to use this technology to innovate and drive our economy forward.”
He added: “I can’t wait to see what comes next.”
Following in the steps of Arizona
This is the second Blockchain-friendly bill that has been enacted into law within the past few days. On May 29, Arizona Governor Doug Ducey signed a bill which recognized the legality of Blockchain’s signatures and smart contracts.
Bitcoin influences and has a domino effect upon every state and company, and this law aims to promote both Nevada and the Blockchain community.
Let us hope that Nevada continues to become a decentralized Blockchain-friendly stateso that the amendments may focus on promoting honesty, integrity, validity and immutability - all of which Blockchain is known for.
One by one, US states are gearing towards the direction of Bitcoin. The digital currency that started small is now instructing the world and providing a path for how the future will grow financially.
The world is adjusting to Bitcoin, something never experienced before in history, and a world centered around cryptocurrencies is the future that we should look forward to.
Transparency and a better economy await with this law validating the legality of Bitcoin.