Tribal Nation-Backed Economic Zone Solicits Feedback for New DAO Regulatory Structure

The Catawba Digital Economic Zone (CDEZ) creates a regulatory environment that can keep pace with the speed of Web3 innovation and provide a stable legal framework for the founding of decentralized organizations

ROCK HILL, S.C., June 2, 2022 /PRNewswire/ -- The Catawba Digital Economic Zone (CDEZ), established earlier this year by The Catawba Indian Nation, has launched a comment period for the development of regulations pertaining to Decentralized Autonomous Organizations (DAOs). The Advance Notice of Proposed Rule-Making (ANPRM), that was passed by CDEZ regulators, opens a public comment period where industry experts and community members can give feedback on DAO regulations via forms on the CDEZ website, email, or on the CDEZ Discord server. The comment period ends on July 15th, 2022.

While states like Wyoming have started experimenting with recognizing DAOs as legal entities, sovereign states have been slow to follow suit, including the U.S. government. With the backing of a sovereign tribal government, the CDEZ has an opportunity to become one of the first sovereign nations to build a legal structure for DAOs from the ground up. This request for feedback is focused on a number of areas in DAO legal structure including, but not limited to, membership management, KYC, quorum, and securities law.  

"Our goal with this rule-making around DAOs is to create a structure that enables innovation, rather than forbidding it. We want to take the best practices from regulatory environments across the world to make the CDEZ the obvious choice for anyone that is looking to start a DAO," said Joseph McKinney, Founder and CEO of the Catawba Digital Economic Zone.

The CDEZ, with a model similar to Estonia's eResidency, allows anyone in the world to set up an eCorporation online and take advantage of policies and regulations that allow them to safely manage their digital assets, raise investment capital, and offer digital banking services. eCorporations are legal corporations, permitted to conduct business virtually from the CDEZ, and can open bank accounts within the United States. The CDEZ is a regulatory sandbox protected by the high walls of U.S. treaty obligations.

TheLawyer, a pseudonym for the Head of Legal at KlimaDAO said, "We look forward to participating in this process with the Catawba Digital Economic Zone to create a regulatory structure for DAOs that provides regulatory clarity to DAOs around their day-to-day operations and empowers innovation, all while protecting consumers. As legal experts on Web3 and DAOs, we have been exploring many regulatory solutions for this emerging field, and are encouraged by CDEZ's willingness to work with the industry to build a stable space for Web3 experimentation."

The CDEZ is a sovereign regulatory zone, established and backed by the Catawba Indian Nation. The CDEZ moves at the speed of innovation. Founders and developers that incorporate in the CDEZ can rest assured that they will have a clear regulatory and legal framework that adapts based on their needs - without the need for archaic paperwork and in-person headaches.

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SOURCE Catawba Digital Economic Zone