Legislation recognizing decentralized autonomous organizations (DAOs) as companies was approved by the Wyoming state senate on Tuesday.
- The bill now proceeds to a vote in the Wyoming House of Representatives, where it will become law if it is passed unaltered.
- Wyoming would be the first U.S. state to pass such legislation into law.
- DAOs are companies whose governance is built on smart contracts and where decision making is shared around the organization rather being centralized under a boss or executive.
- This legislation would allow DAOs to set up in Wyoming, adding greater legitimacy to cryptocurrency projects and further enhancing the state's reputation as a blockchain-friendly jurisdiction for new companies.
- The state also introduced a bill in February to build a blockchain-based system for companies to file reports, data and other information required by law.