Last week, lawmakers in Wyoming took one step closer to introducing a new law, which would be of great importance to the world of decentralized finance (DeFi) in the crypto space. If the law is put in place, it would enable Decentralized Autonomous Organizations (DAOs) to obtain company status within the state. Approval was granted to Bill 38 at a meeting in Wyoming. The bill had been introduced in the beginning of the year i.e. in January via the first Committee Hearing. The primary aim of the bill is to permit DAOs to be recognized as legitimate companies by the state authorities.
If DAOs are granted this permission, they would be able to form Limited Liability Companies or LLCs. Attorney and partner for Hathaway and Kunz, Matt Kaufman stated that there was still a long way for the bill to go, but he was very pleased with the most recent development. Of course, he was nothing but full of praise for the legislature in Wyoming because it seemed to be adapting quite well to the rapidly growing and expanding crypto space and was also coming up with new strategies for innovating itself.
As far as DAOs themselves are concerned, the fundamentals behind them are in accordance with the decentralized nature of cryptocurrencies, which means that they don’t have a centralized leader for these organizations. Rather than a centralized authority, the control is spread evenly across the numerous members of the DAO’s team. The new bill will grant different crypto startups a significant boost in legitimacy, which is something that’s sorely needed by the crypto space. Of course, this doesn’t mean that everyone is going to be pleased with the bill and what it is promising. Partner at Anderson Kill Law, Preston Byrne stated that he is very much against the said bill.
He shared his opinions with others via Twitter and declared that only token hawkers use ‘DAO’. He went on to say that the bill would only end up justifying the sale of ‘shitcoins’. This is a rather common slur that’s used in the crypto space to refer to coins that are either doomed to fail or have a pathetically low value. Kaufman indirectly answered a number of these concerns in his interview. He disclosed that DAOs that would apply for legitimacy status would be required to jump through more than a few hoops to do so.
He cited the significant amount of entities and smart contracts that have not achieved success throughout the years because the people behind them were unable to maintain them. According to Kaufman, no one wants such groups to be a registered companies and reassured the public that they were going to set a very high bar for acceptance. It appears that Wyoming is making a very hard push for becoming a hotbed of cryptocurrency within the United States. If luck holds, it will work out to be beneficial for all the crypto businesses in the country and the state as well.