USA – WYOMING Trends and Developments Contributed by: Bob Cornish, Law Offices of Robert V. Cornish, Jr., PC
• Wyoming also has provisions for (i) issuance of municipal debt through digital assets and (ii) creation of captive insurers that can utilise digital assets as reserves. The captive insurance provision supplements already favourable trusts and estates laws in Wyoming. • In addition to typical corporate structures, Wyo - ming has both decentralised autonomous organi - sations (DAO) and decentralised unincorporated non-profit associations (DUNA): (a) DAOs are member-controlled organisations that operate without central authority or hier - archical management. Smart contracts are utilised instead. The smart contract location is required on any application for a Wyoming DAO. There are other governance requirements that need to be memorialised as operating by- laws.
(b) DUNAs are the non-profit equivalents of DAOs, and must have at least 100 members, as well as 501 (c)(3) status from the United States In - ternal Revenue Service. While of limited usage to most profit-driven enterprises, DUNAs may prove to be useful as structures involving the distribution of open-sourced software. • Finally, Wyoming has recently launched the Fron - tier stablecoin (FRNT). Its backing consists of US dollars and short-term US treasuries, both of which are held in trust. To enhance confidence, it is struc - tured to be 2% over-collateralised, ensuring that its assets always exceed the number of tokens in circulation. Wyoming anticipates that FRNT will be used by the blockchain community as an alterna - tive to other stablecoins. Likewise, Wyoming con - siders most digital assets to be “personal property” not subject to state taxation.
1013 CHAMBERS.COM
Powered by FlippingBook