Wyoming has continued to set the precedence when it comes to crypto regulations and adoption. In its latest move, the state will begin to recognize decentralized autonomous organizations (DAOs) as limited liability companies, effective July 1.
The initiative could pave way for rapid cryptocurrency adoption in other states across the US. Governor Mark Gordon signed the DAO-focused Bill 38 into law last month. Consequently, DAOs will now enjoy both state and federal recognition just like other businesses.
The bill was sponsored by the state’s Select Committee on Blockchain, Financial Technology and Digital Innovation Technology. It was passed in March by the Wyoming State Senate before moving to the state’s House of Representatives. On April 22, Governor Gordon signed the bill alongside other legislative acts.
Commenting on the development, Wyoming Sen. Chris Rothfuss (D-Laramie) clarified that the law is not out of the ordinary. It does what every tech-savvy contract attorney can do. However, as an added benefit, it simplifies the process of a DAO becoming an LLC by making it cheaper and easier. Rothfuss is part of those that sponsored the bill.
Although there is still a long way to go in crypto regulation, the move is a step in the right direction.