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US Catawba Digital Economic Zone Proposes Recognizing DAOs As Non-Profits or LLCs

Rahul Nambiampurath - BeInCrypto
2022-08-19 07:15

A United States Tribal Nation Economic Zone has drafted new regulation for DAOs. The draft proposes recognizing DAOs as unincorporated non-profit associations or limited liability companies.

A United States Tribal Nation Economic Zone has proposed new rules on Decentralized Autonomous Organizations (DAOs). The Catawba Digital Economic Zone (CDEZ) released a draft to the public on DAO regulation, welcoming commentary and feedback on the draft. The commentary is open until Sept. 10.

The draft focuses on such matters as the legality of DAOs and the economic potential of DAOs and wants to use the regulation to attract businesses to the region. Among other companies, it is looking at those working in the web3 space.

Specifically, it wants to recognize DAOs as unincorporated non-profit associations or limited liability companies. The CDEZ already set out regulations that defined digital assets in July.

By allowing DAOs to function as non-profit associations, they would be allowed to function with a lot more flexibility, following the style that they have functioned with so far as opposed to being required to meet any formal requirements.

United States moving forward on crypto regulation

After years of havering on crypto regulation, the United States has finally begun to make much quicker progress on the matter. 2022 has been a year of many developments in terms of rules or potential policies, and the next few months may see much more of this.

The Federal Reserve recently issued final guidelines for crypto companies looking to open master accounts. Crypto companies have argued that this would let them serve customers better. Several have asked for these and as such have sent requests to the Fed.

United States Senators also drafted a second crypto regulation bill. This one would give the United States Commodity Futures Trading Commission (CFTC) some authority over the crypto market.

Stablecoins a priority as Fed still mulls over CBDC

Stablecoins seem to be one of the biggest priorities for regulators, and this topic has come up time and again in 2022. Authorities believe that laws are required to ensure stability, and the TerraUSD case has only accelerated any reviews of the niche.

However, some panelists at a Fed conference said that the scope of cross-border CBDCs is still quite limited. They cite the rule of law, stability, network effects, and the depth of markets as advantages for fiat currencies.

The United States has confirmed that it is looking into a CBDC, though there hasn’t been too much progress in this regard. A Federal Reserve Governor also said that he considered the technology to be over-hyped.

The post US Catawba Digital Economic Zone Proposes Recognizing DAOs As Non-Profits or LLCs appeared first on BeInCrypto.

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