Wyoming One Step Closer to Passing Landmark DAO Law

Key Takeaways

  • A bill was introduced in January to give company status to DAOs.
  • Today it passed the first hurdle in the Senate, but it still has a long way to go.

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Wyoming lawmakers today came closer to putting a law into place that would grant company status to decentralized autonomous organizations (DAOs). 

At the Wyoming Legislature’s Corporations, Elections & Political Subdivisions Meeting, the Senate approved Bill 38, introduced in January, through the first committee hearing. 

The bill wants to make DAOs recognized by state authorities and grant them the ability to form as limited liability companies (LLCs). 

But it still has a long way to go. Matt Kaufman, an attorney and partner at Hathaway&Kunz law firm who explained the bill at the meeting, told Crypto Briefing that although he was “super pleased,” the bill “still has a way to go before it’s final.” 

He added: “Wyoming legislature continues to embrace the fast-changing digital asset landscape and think of ways we can help facilitate new innovation.” 

DAOs are essentially business structures where control is spread out across team members instead of being centered around one boss. 

It is hoped the bill would give more legitimacy to crypto startups. 

Though some lawmakers are skeptical of the bill. Preston Byrne, a partner at Anderson Kill Law, slated the bill on Twitter last month, saying it would be used to “justify selling shitcoins and half-baked code.” 

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