California Lawmaker Introduces Bill to Incorporate DAOs

UTC by Benjamin Godfrey · 3 min read
California Lawmaker Introduces Bill to Incorporate DAOs
Photo: Unsplash

With Matt Haney taking a very bold step that is backed by the industry, seeing DAOs function as businesses will be a matter of time.

A California lawmaker Matt Haney has introduced Assembly Bill 1229 which seeks to re-engineer and expand the state’s corporate to include Decentralized Autonomous Organizations (DAO). As reported by Decrypt, the proposed Bill, if passed, will enable DAOs, blockchain networks and smart contracts to register as businesses in the state.

This registration will enable the protocols to function like a regular business with the ability to file taxes and be compliant with other state and federal regulations. Per the report, the proposed Bill has received backing from industry giant Andreessen Horowitz (a16z) as well as the Crypto Council for Innovation.

While the pace at which regulations are being approached at the Federal level as it concerns the digital currency ecosystem is slow, many states are notably pushing forth new momentum with respect to integrating cryptocurrencies. California has been particularly progressive in this regard and while there is optimism with respect to Bill 1229, the first order will be to educate other AssemblyMembers and bring them up to speed about the technology underpinning DAOs.

“Our goal is to educate our colleagues on blockchain basics, California corporations, and the workings of Decentralized Autonomous Organizations (DAOs),” a spokesperson for AssemblyMember Matt Haney revealed to Decrypt. “By establishing a legal framework around DAOs, we can create certainty, legitimize this organizational type, and ensure appropriate taxation in California.”

As a state that is positively tilted toward technology, the goal remains to formulate and pass laws that will help its evolution in no small measure.

“We have to make sure that our laws are keeping up with technology,” the spokesperson said. “For us, we’ve seen only three paths forward, environmental tech, biotech, and we think that Web3 needs to be firmly rooted in California. And that’s what this bill is about.”

California Lawmaker Considers DAOs and Web 3.0 as the Future

The world has seen a number of technological breakthroughs over time and despite the resistance to crypto and its underlying technology, California Lawmaker believes DAOs and the broader Web 3.0 is the future of innovative technology.

“Whatever you call this new technology—blockchain, web3, or crypto—we know that it’s the future of tech,” Assemblymember Haney said in a statement. “It would be devastating to both our economy and our identity as a state to lose California’s place as the world’s tech leader because our laws are not keeping up with the times.”

The laws are even more needed at a time when the clamor from the industry has reached a whole new pedestal with growing calls for regulation. Coinbase Global Inc (NASDAQ: COIN) has recently sued the US Securities and Exchange Commission (SEC) for keeping a long silence in providing clear guidelines for the industry.

With Matt Haney taking a very bold step that is backed by the industry, seeing DAOs function as businesses will be a matter of time.

Blockchain News, Cryptocurrency News, News, Technology News
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