Wyoming has become the first US state to grant legal recognition to Decentralized Autonomous Organizations (DAOs).
Wyoming has become the first US state to grant legal recognition to Decentralized Autonomous Organizations (DAOs). Governor Mark Gordon signed the Wyoming Decentralized Unincorporated Nonprofit Association Act, also known as DUNA, into law on Thursday.
DAOs are internet-native communities with shared goals, typically managed by code and smart contracts. Their decentralized nature has previously posed challenges for regulators, with the Commodity Futures Trading Commission successfully holding a DAO liable for legal violations in 2023.
The DUNA act grants DAOs legal existence, allowing them to enter contracts, open bank accounts, appear in court, and pay taxes. Importantly, it achieves this without interfering with the internal structure and operation of DAOs, preserving their core decentralized nature.
The new law is seen as a major breakthrough for DAOs, which have faced regulatory uncertainty in recent years. Miles Jennings, general counsel for the crypto-focused venture capital firm a16z crypto, praised the legislation, highlighting its ability to "enable blockchain projects to operate within the bounds of applicable laws without compromising their decentralization."
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
