Wyoming legally recognizes DAO

Wyoming continues its path to the permission-based crypto economy. It already recognizes cryptocurrencies as money and gives bank licenses to crypto businesses (Kraken exchange was the first to receive it in 2020).

It is tackling more complex notions now, such as DAO – Decentralized Autonomous Organizations – member-managed or algorithmically managed entities that function on a blockchain using smart contracts. This means that not only the DAO’s main activity (often related to the #DeFi) is on-chain, but all decision-taking, revenue-sharing operations are on-chain as well.

Some might argue that a DAO doesn’t need any regulation, but Wyoming regulators may think that it’s better for any business to have a legal foothold. So effective July,1 a special provision to the corporations act precises DAO as a distinct form of LLC.  CryptoFed DAO is the first DAO to be registered within this law, and the state is hoping for many more to come, establishing itself as the most developed crypto jurisdiction in the world.