The American CryptoFed DAO has received notice from the Wyoming Secretary of State’s office that it is the first Decentralised Autonomous Organisation to be legally recognised in the US.
This is a shot in the arm for monetary independence as Wyoming had been one of the most progressive states as far as supporting DAO’s is concerned. At the beginning of the year, it was the first state in the country that recognised DAO’s as a distinct form of Limited Liability Companies (LLC). This law has become effective as of July 1, 2021, and based on that, the CryptoFed DAO has been given recognition.
Wyoming’s Secretary of State Edward Buchanan noted the state’s spirit of innovation when he said, “Wyoming has a reputation for being on the leading edge of business technology, beginning in 1977 with the recognition of LLCs. We are proud to continue this innovation by offering legal protections to Decentralized Autonomous Organizations.
I congratulate American CryptoFed DAO, LLC, the first legally recognized DAO filed in Wyoming with the Secretary of State’s Office.”
The American CryptoFed DAO, as the name suggests, would be governed by a set of governance token holders that were issued at the time of the token definition as defined in the Token Safe Harbor Proposal 2.0. The rules would be set and determined by a wide number of governance token holders rather than a central administration or a government and all the transactions would be transparently stored in the blockchain.
Marian Orr, CEO of the American CryptoFed DAO, stated, “Wyoming is the leading digital assets jurisdiction in the USA, and now with this DAO law, Wyoming is arguably the top blockchain jurisdiction in the world. What this means is that creating a truly digital currency with mass acceptance is now possible.”
This move does open the possibility of the introduction of a digital currency and it could well start with the state of Wyoming. With the governance being decentralised, all the decisions like these are likely to be voted upon by the governance council and this could lead to interesting possibilities and also lay a precedent for similar such rulings and regulations in the other states of the US.