- Wyoming has introduced a bill that could incorporate decentralized autonomous organizations (DAOs) as companies.
- The Wyoming Senate voted Feb. 03 to refer the bill to a standing committee for further deliberation.
- Crypto lawyer Preston Byrne is opposed to the bill on the grounds that it is too lenient with insufficient member oversight.
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Wyoming legislators have moved to ratify a new law that would incorporate decentralized autonomous organizations (DAOs) as a limited liability partnership firm.
Bill to Recognize DAOs as Partnership Firms
Wyoming’s Select Committee on Blockchain, Financial Technology, and Digital Innovation Technology has moved a bill to grant company status to decentralized autonomous organization, or DAOs.
A DAO is a for-profit or not-for-profit entity that is crowdfunded by individual investors through cryptocurrency transactions. DAO rules are encoded in and enforced through a smart contract, updated only after a referendum from the voting entities.
If Wyoming passes the bill, DAOs will be eligible to be incorporated as a limited liability company (LLC) under state laws. The bill will also allow existing LLCs to restructure as a DAO LLC.
Introduced on Jan. 07 earlier this year, the Wyoming Senate assigned the bill to the state’s standing committee Wednesday for re-reference for corporations. The committee will report whether or not the Senate should move forward and introduce amendments to the bill.
Lawyer Votes Against the Bill
However, a move to incorporate DAOs as registered companies is not universally supported. Preston Byrne, partner at Anderson Kill Law, came out against the bill on Twitter.
Wyoming: scrap this bill. “DAO” is language long used by token hawkers to justify selling shitcoins and half baked code….