The state of Wyoming, known for its crypto-friendly attitude, has approved the first legally recognized decentralized autonomous organization (DAO) in the United States. According to CoinTelegraph, the American CryptoFed DAO was officially recognized as a legal entity as of July 1st.
Marian Orr, the chief executive of CryptoFed DAO, stated on July 4th that “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.”
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The Merchant Advisory Group (MAG) expressed public support of the filing. John Drechny, who is the group’s chief executive, stated that the MAG has been advocating for increased competition in the payment acceptance sector.
What is the CryptoFED DAO
The American CryptoFed DAO describes its mission as promoting the creation of a two-token economy that is resilient against inflationary or deflationary influences. It was established by mobile banking solutions provider mSHIFT on July 1st. The two tokens are the Ducat, CryptoFed’s EOS-based algorithmic stablecoin, and the Locke, CryptoFed DAO’s governance token.
The Ducat can be used for fee-free transactions. Ducat holders earn interest, and network users are paid rewards in Ducat. The rewards and interest rates are adjusted dynamically by machine learning; the Ducat is designed to appreciate against the USD in accordance with inflation rates.
Additionally, the Locke has been issued in compliance with the Token Safe Harbor Proposal 2.0, which was published by SEC Commissioner Hester Peirce in April.
The recognition of the CryptoFed DAO as a legal entity is only Wyoming’s most recent move in a series of crypto-friendly gestures. The legislation to support the legal recognition of DAOs was passed in the state in March of this year.
Previously, in September of 2020, the state of Wyoming granted crypto exchange Kraken with a bank charter, making it the first crypto business that was legally allowed to operate as a bank in the country. Wyoming granted a similar charter to AvantiBT in October.
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