Wyoming grants official legal entity status to American CryptoFed DAO
American CryptoFed DAO has become the first legally recognized DAO in US history. CrypfoFed Dao has received a notice from the state of Wyoming, showing an official recognition as a distinct form of limited liability company. The press release was published by the company on July 4, stating that the company has received the notice from the Wyoming Secretary of State’s office. The statement indicates that the company is becoming the first legally recognized DAO in the state, as well as in the country. The state had already passed a law earlier this year, in March, calling on recognizing DAO’s as a distinct form of limited liability companies, LLC. This law became effective on July 1. Wyoming has long been known as a crypto-friendly state and the recent approval comes as a further step towards larger crypto acceptance in the state. DAO stands for the decentralized autonomous organizations, and CryptoFed DAO stands to be the first such company to be officially recognized in the country.
The Chief Executive of the company, Marian Orr, said on July 4 that the state is the leading digital assets jurisdiction in the country, and with this law, the jurisdiction is among the top blockchain jurisdictions not only in the USA but around the world as well. According to Mariam Orr, the new law is creating an environment where mass acceptance of crypto is now truly possible.
What is CryptoFed DAO and how does it work?
CryptoFed DAO is one of the most active companies in the country that are working towards further promoting the idea of a two-token economy and its creation. The two-token economy, according to the company, is more resilient against inflationary or deflationary influences, which makes it more trustworthy and safe. The company was created by a leading mobile banking services provider called mSHIFT. CryptoFed’s two tokens are Ducat and Locke. Ducat is an EOS-based algorithmic stablecoin, while Locke is CryptoFed DAO’s governance token. According to the information provided by the company, Ducat can be used for transactions without any fees. The holders of this token earn interest and the network users are paid a reward in this token as well. The company also notes that the rewards, as well as interest, are adjusted thanks to machine learning automatically. The token was designed to increase against the US dollar according to the inflation rates. As for Locke, the company notes that it was issued in compliance with the Token Safe Harbor Proposal 2. This proposal was published by the SEC a few months ago, in April.
Impact of Wyoming’s decision
The decision made by the authorities of the jurisdiction is very important for the whole blockchain market around the world. This step takes the whole market one step closer to the long-awaited and anticipated exposure. The decision can also be viewed as a step towards putting pressure on larger society to start thinking and talking about the future of blockchain and cryptocurrencies. This happens while the crypto market is on its own becoming more and more popular every day. One of the major reasons for the recent surge in popularity of the crypto trading market is the price movements that cryptocurrencies saw this year. The biggest cryptocurrency in the market, bitcoin increased to an all-time high this year, selling over $64,000. Altcoins have had a similar run, further increasing the popularity of the crypto market. In addition, investing in the crypto market is accessible for larger societies as well. As of now, mostly anyone can invest in cryptocurrencies thanks to online crypto exchanges. These crypto exchanges offer traders access to the majority of cryptos in just a few clicks. There also are many companies that have created special programs that help traders better understand the market. Using a bot for trading can be a great idea for traders, as these bots offer investors the ability to easily analyze the market. They are also capable of opening buy and sell orders on their own, because of which, you can trade cryptocurrencies even if you do not have enough time to understand everything about the market.
With such steps taken by jurisdictions like Wyoming, the popularity of the whole blockchain technology and the crypto market increases a lot. This step is the latest decision made by the jurisdiction showcasing the crypto-friendliness of the state. The legislation to support the recognition of DAOs was passed in the state in March of 2021. However, prior to that, the state had already shown its interest and support of blockchain technology as well. the whole industry. In September of 2020, the state granted crypto exchange Kraken with a bank charter. This was the first time in the country for a crypto business to be legally allowed to operate as a bank.