The American CryptoFed DAO is the very first decentralized autonomous organization (DAO) to be legally recognized in the United States.
Wyoming’s DAO bill paved the way for this cryptocurrency milestone; Wyoming’s DAO bill was passed in March 2021, and legally recognized DAO’s as a distinct form of an LLC. This means that DAOs that register in the state of Wyoming are legally recognized as business entities in the United States and therefore receive the same legal protections as an LLC.
Wyoming’s DAO bill went into effect on July 1st, 2021 at midnight; 11 minutes later (12:11 am), the American CryptoFED DAO became the first DAO to receive approval from the state of Wyoming.
It’s official!! We made history today! Tireless work by @MDKaufman307 and thanks to @GovernorGordon and the WY State Blockchain Task Force that made it possible! @Tyler_Lindholm @JaredSOlsen @TaraNethercott @SenatorDriskill @CyrusWestern @itsmikeyin and others!! pic.twitter.com/5N9LQDbEYZ
— Marian Smith (@gofishwyo) July 1, 2021
“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 true digital currency with mass acceptance is now possible,” said Marian Orr, CEO of the American CryptoFed DAO and the former mayor of Cheyenne, Wyoming.
It is important to note that a DAO is not supposed to have a business hierarchy and a CEO. Orr says,
“In time, my role as CEO will vanish, as all governance token holders will be voting on governance matters without the influence of an executive team.”
What’s a DAO?
DAO stands for Decentralized Autonomous Organization. A DAO is an entity that is governed by its members via the creation of proposals that decide the DAO’s next steps; subsequently members vote on those proposals, either in favor or against the decision being put forward.
Some DAO’s have a very broad mission when it comes to their existence and purpose, others, like Orr’s American CryptoFed DAO, has a very specific goal. For example, the American CryptoFed DAO aims to create a monetary system with zero inflation, zero deflation, and zero transaction costs.
Wyoming’s push to become a blockchain hub
Wyoming’s DAO law is the latest step taken by the state to create a blockchain and digital currency-friendly legal environment. In 2019, Wyoming passed a law that allowed digital asset businesses to become Special Purpose Depository Institutions (SPDI) in Wyoming. An SPDI is similar to a custody bank; it primarily focuses on storing assets, fiduciary management, and conducting a variety of transactions. In addition, SPDIs are prohibited from making loans with customer deposits of fiat currency, and they must keep 100% of their assets in reserve.
Wyoming is looking to be the home of businesses working with innovative technology like blockchain and digital assets; the regulatory clarity that the state is providing digital asset businesses with is attracting blockchain and cryptocurrency businesses around the globe to the Cowboy State.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.