Legislators in the US state of Wyoming have proposed legislation to allow Decentralized Autonomous Organizations (DAOs) to formally register as a legal entity.
The bill was originally presented in mid-January. Public records indicate that the document was submitted to the Wyoming Senate Committee on Corporations, Elections and Political Divisions on February 3.
The bill aims to allow DAOs to register as a legal entity and have legal status in the state. They will be given the opportunity to form as limited liability companies (LLC). At the same time, the term DAO, LAO or DAO LLC will appear in the official register of companies. LLCs already registered in the state can become DAOs under the terms of this measure.
The bill also takes into account DAOs that are “member-driven” or “algorithmic-driven.” Regarding the latter category, the document states that “a decentralized autonomous organization with algorithmic control can be formed in accordance with this chapter only if the underlying smart contracts can be updated, modified or otherwise improved.”
According to the bill, the charter of the organization will determine the characteristics of the organizational structure of the registered DAO, including the rights of the participants and how the component of the smart contract can be changed. If a change to the smart contract is made, the charter of the organization will need to be changed or updated.
Wyoming is one of the most cryptocurrency and blockchain-friendly regions in the United States. Last spring, Wyoming authorities allowed local insurance companies to invest in crypto assets, including Bitcoin. In addition, last fall it became known that the Kraken exchange would open its own bank in Wyoming, and the Avanti cryptocurrency bank received a license from the state regulator.
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