Wyoming Gov. Mark Gordon Signs Legislation Recognizing DAOs

Mark Gordon, the Republican governor of Wyoming, recently signed a law recognizing decentralized autonomous organizations (DAOs). The law, known as the Decentralized Unincorporated Nonprofit Association Act (DUNA), reportedly establishes a framework for DAO regulation under existing financial laws.

The bill was advanced by the state’s Select Committee on Blockchain, co-chaired by State Sen. Chris Rothfuss. Rothfuss, a Democrat, praised the signing in remarks published by Fortune, saying it further solidifies Wyoming’s reputation as a crypto-friendly state. The enactment of the law is also viewed as an effort to attract blockchain firms to the state.

"This DUNA legislation is just the most recent puzzle piece. We wanted to make sure that we had the flexibility to figure out what the best practices and policies and use cases were in a legislature that was actually capable of being responsive and adaptive," Rothfuss said.

According to a report by Fortune, Wyoming attempted to address the issue of DAO supervision by passing the DAO LLC Law in 2021. However, it was later observed that this law could create complications under U.S. securities law. The passage of the Corporate Transparency Act by the U.S. Congress further complicated Wyoming’s efforts to attract blockchain firms.