American state, Wyoming, has recognized its first decentralized autonomous organization (DAO), which is a milestone for both the US, Wyoming itself and the recognized DAO, American CryptoFed. A notice was released from the office of the Secretary of State, Wyoming announcing the recognition. In a further attempt to establish its pro-crypto stance, the American state enacted a statutory provision affirming the recognition of DAOs as a unique form of limited liability company (LLC).
CryptoFed DAO to Address Inflation, Deflation and High Transaction Costs
American CryptoFed is aimed at introducing a financial system that is not ridden with inflation, deflation and lastly, high transaction costs. The DAO has identified the inherent issues in the centralized financial system and intends to address these issues. The legalization by Wyoming couldn’t have come at a better time than now when inflation and currency devaluation have become a global challenge.
Merchant Advisory Group (MAG) has repeatedly called for an open market in the payment remittance sector. Its CEO, John Drechny commented on the first DAO recognition, saying with it, businesses will have more options in the sector. He further said Wyoming has set the stage for more friendly regulations for the crypto industry by backing American CryptoFed.
In its DAO, American CryptoFed will introduce a native token for governance thereby democratizing the process of making rules. Thus, there will be no central authority and transactions will be stored on the blockchain without tampering. The DAO according to CryptoFed will help territories, businesses and its clients avoid frequent transaction costs and save money.
Senator Lummis Calls Out to Crypto Miners
Wyoming is making giant strides in the crypto space just like its fellow state, Texas, who has opened its arms in a wide embrace to receive Chinese miners. The aftermath of China’s ban resulted in an exodus of Bitcoin mining companies away from the state. Interestingly, Senator Cynthia Lummis has called out to Bitcoin miners to consider the US state as a mining location.
Last month, she proposed a dialogue on Bitcoin with President Biden. It is not certain if she went ahead as planned. However, apart from crypto friendly laws, there seems to be no other attraction for miners in Wyoming unlike Texas that boasts of cheap energy. Also, Miami’s cheap nuclear energy is an appeal to miners, but there are no reports indicating their move to the city yet.
Despite the general disposition of the US government to cryptocurrencies, it is quite interesting to see that some US states and cities are receptive to cryptocurrency and mining. In May, the US government slammed a 40% tax on crypto transfers exceeding $10,000. Unfortunately, it doesn’t seem like the regulatory storm is over. While traders and investors are anticipating a bull season, looking out for the bears arising from hostile crypto regulations in the coming months would not be a bad idea.
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