Governor Mark Gordon of Wyoming has signed into law the Decentralized Unincorporated Nonprofit Association Act (DUNA), marking a significant milestone in recognizing decentralized autonomous organizations (DAOs). Championed by the state’s Select Committee on Blockchain, the law provides a regulatory framework for DAOs under existing financial laws.
The bill, co-chaired by State Sen. Chris Rothfuss, a Democrat, received praise from Rothfuss, who emphasized its role in solidifying Wyoming’s reputation as a crypto-friendly state. The enactment is seen as part of Wyoming’s efforts to attract blockchain firms by offering a supportive regulatory environment.
The DUNA legislation builds upon previous attempts to address DAO supervision, such as the DAO LLC Law passed in 2021. However, concerns arose regarding potential complications under U.S. securities law. To address these issues, the DUNA legislation adopts the model of unincorporated nonprofit associations, providing legal existence to DAOs and enabling them to engage in contracts and legal proceedings.
While the new law sidesteps the question of crypto token status, there remains the possibility of regulatory oversight by the U.S. Securities and Exchange Commission (SECSEC US government agency that regulates securities markets.). Miles Jennings, general counsel for crypto at A16z, highlights the challenge Wyoming faces in navigating regulatory complexities while maintaining its appeal to blockchain firms. (Source: Bitcoin.com)