DAO gets legal recognition in the US as Utah DAO Act passes

utah state legislature passed it Act HB 357, Utah Decentralized Autonomous Organization Act (Utah DAO Act).

This new law provides legal recognition and limited liability for the DAO, legally calling it a “Utah LLD.” The law is the result of a joint effort between the Digital Innovation Task Force and the Utah Blockchain Council.

The Utah DAO Act was approved on March 1, 2023 after passing committees in the Senate and House of Representatives. Define DAO ownership and protect his DAO-compliant anonymity through bylaws. A Quality Assurance DAO protocol has also been introduced to ensure clear nuances in tax processing and updated DAO functionality.

Joni Pirovic, a blockchain and digital asset tax advisor who worked for the Digital Innovation Task Force, said: murmured:

“This is a big step forward for DAO innovation, and this law is based on: @coalaglobal It is a DAO model law and will come into force from January 2024. “

The DAO Act recognizes that the DAO is a transnational organization and strives to give maximum flexibility to innovation. Requiring a manual reporting process can provide technical assurances equivalent to the protections the law seeks to protect.

There have been some serious concerns by the Utah Blockchain Congress and a compromise was reached to pass the bill. One concern was the DAO’s lack of anonymity and accountability. This was addressed through a compromise requiring the DAO to reveal the originator while maintaining anonymity.

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Additionally, the original tax language used was found by the Utah Blockchain Congress to be incompatible with federal and state tax realities, so a compatible tax language was proposed by the Utah Tax Commissioner’s Office. it was done.

Finally, there was concern that the Utah Corporate Department lacked ramp-up time to handle new applications. To address this concern, the bill’s implementation date was set for his 2024, giving him more time to coordinate and edit the actual implementation towards the bill.

Republic of the Marshall Islands approved A similar law was enacted last year, identifying DAOs as limited liability companies and ensuring the adoption of a formal DAO structure in state legal units.