American venture capital A16z recently announced the 2024 Crypto annual report. The report mentioned that cryptocurrency and legal policy are hot topics of discussion during the US election. The following is an extended analysis and report on the U.S. government’s important changes in legal regulations on virtual currencies.
Bitcoin and Ethereum ETFs Officially Recognized by the Government
On 1/10 this year, the US SEC officially approved Bitcoin ETP (Exchange-Traded Products, the official registered name of ETF), and on 7/24 Ethereum ETP was also issued. The issuance of ETP did not immediately stimulate the prices of BTC and ETH, but it does mean that virtual currencies and digital assets have been recognized by mainstream institutions and can be legally invested under the protection of government decrees.
Wyoming passes DUNA bill, opening up new tax-saving business opportunities
Wyoming Governor Mark Gordon signed the DUNA Act into law on March 7th. The significance of the passage of DUNA not only shows Wyoming’s support for new blockchain technologies and brings solutions to the challenges faced by decentralized organizations, but also reinterprets the innovative structure of the DAO.
The new structure of DAO (Decentralized Autonomous Organization) is called "Decentralized Unincorporated Nonprofit Associations" (DUNA). Allow DAO to maintain decentralized characteristics under legal compliance. DAOs have always been regarded as a new variant between corporations and non-profit associations. Interestingly, the DUNA Act contains an important agenda; DUNA can be converted into a limited company and can acquire mortgages, hold and transfer real estate in the name of DUNA, and can also make profits and maintain "non-profit organization" status.
As early as 2017, the SEC determined that although DAO is a decentralized organization, it cannot be exempted from registration-free securities. The SEC believes that as long as securities (or shares) are issued and registered in the United States, regardless of whether members subscribe for U.S. dollars or virtual currencies, U.S. securities laws shall apply.
The Commodity Futures Trading Commission (CFTC) feels the same way about DAOs. The CFTC believes that DAO should not be regarded as a legal entity, but as a group of individuals. DUNA was transformed into an unincorporated non-profit group in the form of DAO.
Wyoming has historically been largely Republican and Trump-leaning, a state with just 560,000 residents that is home to many hidden billionaires. Why are billionaires here? There are many discussions on the Internet, trying to unravel the mysterious reason why this barren land that is still in the era of the Wild West and the cowboys attracts so many wealthy people. The richest people in Wyoming are not locals, but immigrants. This state is full of desolate towns, uninhabited, with bare mountains and open spaces where you can ski in the winter. Since the beginning of the epidemic, a large number of people who moved from New York and Los Angeles have invested in real estate.
Wyoming's official website is said to be the most business-friendly state in the United States. It pays almost no taxes and is exempt from corporate tax, personal tax, income tax, house and land value tax, value-added tax, warehousing tax, chain franchise tax, etc. Recently, real estate in Wyoming has been hyped to a new high. The average annual income of residents in Teton County, Wyoming is US$100,000, but the average unit price of registered houses is as high as US$7 million. At this time, let’s take a look at the real estate sales and investments passed in the DUNA Act The terms are particularly worth pondering.
According to the Wyoming Blockchain Report, the Wyoming Legislature has enthusiastically embraced blockchain and cryptocurrency since 2016, and is committed to promoting support for blockchain, and was the first to support the Token Taxonomy Act (Token Taxonomy Act). ) state.
Cryptocurrency mining company Elite Mining Inc relocated to Cheyenne, Wyoming’s capital, in 2021. Elite Mining purportedly mines with renewable energy.
Interestingly, in the Google Trends report compiled by A16z, the number of searches for Bitcoin and Ethereum by Wyoming residents did not increase but decreased. It can be understood that Wyoming residents seem to have long understood the principles of Bitcoin. Wyoming could become a popular area for DUNA registrations next year under the U.S.'s home state umbrella.
FIT 21 would make political donations transparent
In May 2024, the Democratic and Republican parties simultaneously supported the passage of the FIT 21 proposal (21st Century Financial Innovation and Technology Act). The purpose of this bill is to provide clear and transparent supervision of cryptocurrencies, which can protect new entrepreneurs or investors from financial harm and prevent future SEC sanctions and lawsuits.
The FIT 21 bill passed before the US presidential election is also of great significance. According to Reuters, recent data indicate that half of corporate political donations to political parties come from cryptocurrency companies. The U.S. House of Representatives passed a proposal on May 22, supported by cryptocurrency companies such as Coinbase, The Block and Digital Currency Group, to make political donations transparent in advance of the year-end election to reduce the trouble of future post-election scrutiny by the SEC and CFTC. .
This article A16z Annual Crypto Report: The Three Major Cryptocurrency Legal Changes in the United States this Year first appeared on Chain News ABMedia.
