Tusk Strategies to Help DAOs Become Law | Crypto

Tusk Strategies to Help DAOs Become Law

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-KlimaDAO is collaborating with politicians to provide a legal framework for DAOs in the Lummis-Gillibrand Responsible Financial Innovation Act.
-The legislation was introduced to the Senate in June, and published on Github to gather comments from the technical community.
-The bill aims to bring clarity to the crypto industry, outlining how digital assets should be taxed and how they should be regulated by different government agencies.
-It also includes definitions for what virtual currencies are, as well as for other terms that havent yet been established by lawmakers, including DAOs.
-KlimaDAO hopes the legislation will help legitimize its work in offering carbon-backed tokens that can be used to offset emissions.
-In a blog post, KlimaDAO wrote, We are honored to have the chance to work with Senators Gillibrand, Lummis, and their staff, in helping to shape such an important project.
-The firm, owned by prominent political strategist and venture capitalist Bradley Tusk, has represented and invested in companies at the vanguard of digital currency for years, according to its website.
-Under the framework, DAOs would be classified as business entities, adding on to the Internal Revenue Code of 1986.
-The proposed legislation would extend the classification to DAOs effective 2023.
-The addition defines DAOs as organizations that use smart contracts, computer protocols which function automatically, to effectuate collective action for a business, commercial, charitable, or similar entity, according to KlimaDAOs blog post.
-The new definition also states DAOs function under a structure of governance that is achieved primarily on a distributed basis, meaning that members of a DAO make decisions by interacting with a protocols public ledger.
-The definition also clarifies what actions undertaken by a DAO would not count as a form of business activity and be tax exempt, which includes raising funds for charitable purposes and the staking and mining of digital assets.

KlimaDAO gID 4 Tusk Strategies to Help DAOs Become Law

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