What Happened on Mar. 6th | Legal Status of DAO
It is very common for DAOs to have legal entities, and more and more DAOs are taking this step, for example some DAOs are registered as LLCs in Delaware, U.S. In addition to LLCs, DAOs that are not involved in investment business more often choose to represent themselves as foundations, LCAs, UNAs, special purpose trusts, cooperatives, etc. in order to conduct business and achieve legal protection for DAO members. The DAO Act passed in Wyoming in 2021 will also bring DAOs under the LLC system.
Therefore, no matter which of the above forms is adopted, it is essentially a layer of existing legal entities wrapped outside of the DAO. That is, in the past there was no such thing as a DAO at the legal level, it was an LLC, a company, a cooperative, a foundation, a trust, but chose to operate as a DAO form of organization.
The passage of the legislation means that DAOs no longer need to be packaged as entities, and that DAOs themselves have become a unique form of organization recognized by Utah law.
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Utah DAO Act Gives Limited Liability Protections and Legal Entity Status to DAOs: Utah has become the first state to pass legislation recognizing decentralized autonomous organizations (DAOs), following the passing of the "Utah Decentralized Autonomous Organizations" Act (Utah DAO Act).
Kraken Bank on Track to Launch Soon, Says Kraken Chief Legal Officer: Kraken's chief legal officer Marco Santori said on The Scoop podcast that the crypto exchange is going to launch its own bank.
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Policy and Regulation