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The upper chamber of Wyoming’s legislature has passed a bill that, if approved, would clear the way for decentralized autonomous organizations, or DAOs, to become incorporated under state law.
The 28-2 vote took place on Wednesday, public records show, and was sent to the State House of Representatives the same day. On Thursday, the bill was formally introduced and transferred to that chamber’s Minerals, Business & Economic Development committee.
Should the House of Representatives clear the bill, any differences would need to be hammered out between the two chambers before being sent to Wyoming Governor Mark Gordon for signature.
The bill, as The Block reported in early February, is the first of its kind, and would create a legal link between would-be decentralized organizations and a U.S. state. Wyoming has gained a reputation as an industry-friendly state following previous legislative developments and the establishment of crypto-focused banks there.
The so-called DAO law has attracted both supporters and critics. As Decrypt noted when the State Senate’s bill passed a committee vote earlier this month, some believe that the law, if approved, would set the stage for a new host of decentralized organizations to form. Cardozo School of Law professor and OpenLaw co-founder Aaron Wright helped draft the bill, telling the Decrypt: “It still takes a lot of work to set one of these up lawfully, and that’s what the whole Wyoming bill is trying to do — make it a lot easier, cheaper to do.”
Anderson Kill partner Preston Byrne, on the other hand, has argued that the state should “scrap this bill.”
