In a Twitter post made by KlimaDAO: “Update on the Lummis-Gillibrand Responsible Financial Innovation Act—the crypto regulation @KlimaDAO is advising US Senators on. Regulatory clarity is needed for the on-chain carbon market to scale. This draft bill is a huge step in the right direction.”
On Friday, KlimaDAO announced that they are hopeful that the Senate and House Of Representatives of the United States of America will approve the Lummis-Gillibrand Responsible Financial Innovation Act.
In the quest to provide a legal framework for DAOs, KlimaDAO has had several conversations with the Bitcoin senator, Cynthia Lummis and democratic senator, Kristen Gillibrand. They are both sponsors of the financial act.
In a tweet made by the crypto regulator, it says:
“Update on the Lummis-Gillibrand Responsible Financial Innovation Act—the crypto regulation @KlimaDAO is advising US Senators on. Regulatory clarity is needed for the on-chain carbon market to scale. This draft bill is a huge step in the right direction.”
The DAO bill will explain the key terms related to Web3 and crypto, which have never been seen in US legal provisions. Such terms include digital assets, smart contracts, distributed ledger technology and virtual currency.
KlimaDAO hopes that this bill will define “Decentralized Autonomous Organizations,” citing them as business entities. Hence, the bill is important in approving the works of KlimaDAO in providing carbon-backed tokens which can be used to neutralize emissions.
The legislation was first brought to the Senate in June and released on GitHub to get the insights of the technical community.
This bill aims to make things clear for crypto users, specifically guiding them on capital gains related to crypto staking, mining and spending. It also states how digital assets should be taxed and their regulations by various government agencies.
A member of KlimaDAO’s strategic partnership team, Sam Emmes, stated that the organization had employed the help of Tusk Strategies to provide their opinions to lawmakers. They chose the company because it has invested in and represented companies at the vanguard of digital currency and its past partnership with OlympusDAO.
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