Wyoming 'DAO law' to go into effect in July after receiving final approval
April 24, 2021, 12:56PM EDT
1 min read
Legislation introduced earlier this year in Wyoming to create a legal link between decentralized autonomous organizations (DAOs) and the state government is now the law of the land.
The law, first introduced in February, won final approval in the legislature earlier this month before being signed by Governor Mark Gordon on April 21, according to public records.
As previously reported, the law allows DAOs to become registered as limited liability corporations, or LLCs, in the state. It goes into effect in July.
More broadly, the law serves as a novel bridge between the world of traditional business structures and DAOs, which are governed by the way of blockchain-based smart contracts. Though the history of DAOs is a bumpy one, proponents of the law say it provides a new degree of legal clarity for such organizations.
"Digital asset stakeholders made it clear to us they were concerned about facing general partnership liability in the absence of a well-defined corporate structure. Our DAO LLC legislation should dispel that concern," Wyoming Sen. Chris Rothfuss told CoinDesk earlier this week.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.