Wyoming recognizes the first legal DAO in the U.S.

According to a July 4 announcement, the U.S. CryptoFed DAO received notice from the Wyoming Secretary of State’s office on July 1 that it was recognized as a legal entity.

Marian Orr, CEO of the US CryptoFed DAO, said:

“Wyoming is the leading digital asset jurisdiction in the U.S., and now with the DAO law, Wyoming is arguably the largest blockchain jurisdiction in the world. This means that creating a true, publicly accepted digital currency is now possible.”

The Merchant Advisory Group (MAG), which represents 165 of the largest merchants in the United States, expressed support for its application. MAG CEO John Drechny said the group has been advocating for more competition in the payment acceptance field.

The US CryptoFed DAO was established by mobile banking solutions provider mSHIFT on July 1, 2021. The project describes its mission as promoting a dual-token economy that is immune to inflation or deflation.

Orr emphasized that CryptoFed DAO’s native algorithmic stablecoin Ducat facilitates free transactions. Ducat is based on EOS and uses the delegated proof-of-stake (DPoS) consensus mechanism to achieve high-speed transactions at the expense of decentralization.

New tokens are issued by paying interest to Ducat holders and issuing rewards to network users. Ducat rewards and interest rates are dynamically adjusted through machine learning, and Ducat intends to appreciate against the US dollar based on the amount of inflation the US dollar experiences.

CryptoFed DAO will also issue its governance token Locke to stabilize Ducat.

The issuance of the governance token complies with Version 2.0 of the Token Safe Harbor Proposal outlined by SEC Commissioner Hester Peirce in April.

Wyoming has been at the forefront of pioneering cryptocurrency regulations in the U.S. in recent years, with state regulators working with Caitlin Long of Avanti Bank & Trust to develop a framework for banking licenses for cryptocurrency companies.

In September 2020, Kraken obtained a Wyoming banking license, becoming the first cryptocurrency company in the United States to be allowed to operate as a bank. In October, Avanti also obtained a banking license in Wyoming.

In March of this year, Wyoming became the first state in the United States to pass legislation recognizing DAOs as a new type of limited liability company.