The draft deals with the legality and economic potential of DAOs and aims to attract companies like those working in the web3 space through regulation. DAOs could function much more flexibly if they were non-profit associations, as they would follow their usual work style.
A US economic zone recently drafted a new regulation recognizing DAOs as non-profit associations without legal personality or limited liability companies. After releasing a draft to the public, the Catawba Digital Economic Zone (CDEZ) expects to receive feedback by September 10th.
The draft focuses on issues like the legality and economic potential of DAOs and aims to attract companies through regulation. Other companies that it examines include those working in the web3 space.
The CDEZ primarily seeks to recognize DAOs as non-profit associations or limited liability companies without legal personality. It already established regulations that define digital assets in July.
If DAOs functioned as non-profit associations, they could function much more flexibly. That way, they would follow their usual work style rather than having to comply with formal requirements.
The Regulation of Cryptocurrencies Advances in the United States
After working on crypto assets regulation for years, the US has started to move much faster on it. In that regard, this has been a year of many developments in terms of potential rules or policies. There might be further changes in the next few months.
The US Federal Reserve (Fed) recently released guidelines for crypto firms seeking to open master accounts. Some businesses that think this would allow them to serve customers better have applied for these before the regulatory agency.
US senators also drafted a bill to authorize the US Commodity Futures Trading Commission (CFTC) to regulate the cryptocurrency market. Despite various actions affirming the ability of the SEC to regulate cryptocurrencies, the CFTC does it by law.
Regulators View Stablecoins as a Priority as the Fed Reflects on CBDCs
US regulators seem to view stablecoins as a priority, a topic they have discussed repeatedly in 2022. The authorities believe that laws ensure stability and that the TerraUSD case has only accelerated any reviews in that niche.
At a Fed conference, some speakers said that the potential of cross-border CBDCs remains limited. They consider that the rule of law, stability, network effects, and market depth are advantageous to fiat currencies.
Although the United States is studying a CBDC, there has not been much progress. A Federal Reserve governor also commented that he views this technology as overvalued.
Those supporting CBDCs usually highlight that they offer higher speed and security when paying, as well as efficient implementation of monetary policies. Among the latter, they mention the direct manipulation of interest rates in the accounts of users.
The use of CBDCs involves a high level of control from the governments issuing them. For example, the eYuan will allow China to track the transactions conducted by citizens.
By Alexander Salazar
