- American CryptoFed DAO has been allowed to legally operate in Wyoming from July 1.
- Decentralized autonomous organizations are pieces of code that execute actions on the blockchain without any intermediaries.
- This is another in a series of steps that have made Wyoming one of the most crypto-friendly US states.
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Wyoming has legalized a decentralized autonomous organisation (DAO) with effect from July 1, marking another in a series of steps that have made the state the most crypto-friendly jurisdiction in the United States.
American CryptoFed DAO, which runs a stablecoin on its network, has received approval from the state to operate as a distinct type of limited liability company, according to a company statement on Sunday. Wyoming is the first state to have legalized a DAO.
DAOs are effectively pieces of code on a blockchain that can execute a process automatically when a series of conditions are met, without the need for any outside decision-making or interference.
“What this means is that creating a true digital currency with mass acceptance is now possible,” Marian Orr, CEO of the American CryptoFed DAO, said.
The decision Wyoming made further legitimizes it as a state that welcomes cryptocurrencies, a sentiment that is inline with its pro crypto senator Cynthia Lummis. A recent survey by Cryptohead showed a majority of people see the US as the country most interested in trading and investing in cryptocurrencies.
“Wyoming is leading the way to create legal certainty in the crypto space,” John Drechny said. Drechney is CEO of The Merchant Advisory Group, which represents the 165 biggest US merchants.
“We can see a path in which merchants will have more choices for payment acceptance,” he added.
CryptoFed’s coins not only help give users more autonomy over their power, but they hope to work with banks and the Federal Reserve. Their website states that they have two coins – Lucat which is a stablecoin pegged to the dollar – and Locke, their own token.
Wyoming has been leading the way in innovation and adoption of cryptocurrencies in the United States, thanks to advances in legislation, such as conferring users the option to store their digital currencies with banks.