The state of Wyoming is getting new attention as lawmakers there approve a new law supporting the use of DAOs as an alternate money framework “for the people.”
Specifically, the CryptoFed DAO pioneered by Mshift on the first of this month is largely seen as a potential new vehicle for investors and crypto fans to get involved in trading within a state framework that establishes support for defi and crypto options.
What is CryptoFed DAO?
Essentially, parties like this are creating tokens and assets that are immune to some of the pressures that the dollar experiences from Federal Reserve activity.
The CryptoFed DAO system in particular has a stablecoin, Ducat, which is built on EOS, and a governance token, Locke, with a maximum 10 trillion circulation. Ducat, with an algorithm that “targets zero inflation and zero deflation,” would seem to be an illustration of that “safe harbor” that some experts now say crypto in general is providing as investors flee a volatile equities market, and steer clear of bonds in an environment where lending snafus have crashed the market more than once.
The new changes in Wyoming are turning heads: in the past, Wyoming got notoriety by allowing crypto exchange Kraken to operate as a bank. Contrast that with how Kraken and similar agencies were treated in New York, and you can see why Wyoming is becoming a “crypto mecca” stateside.
Part of the appeal, for innovators, is how Wyoming approaches crypto rules.
“Wyoming actually did the work on paper to say how exactly they expect you to operate and how they are going to come in and examine you,” David Kinitsky, chief executive of Kraken Bank, said recently in an interview with MarketWatch. “None of the other charters in any capacity address digital assets.”
Interested investors can scan the horizon for opportunities to get into crypto in the U.S.A. Although the SEC has been slow to accept some market entrants, the world is inevitably moving toward crypto as the way of the future.
