ECB Occasional Paper by Cointelegraph

Decentralized autonomous organizations (DAOs) require a robust regulatory framework to secure their role in the future of the financial sector, according to a recent Occasional Paper by the European Central Bank (ECB).

The paper, titled “The Future of DAOs in Finance – In Need of Legal Status,” written by Ellen Naudts, an expert in market infrastructure and payments at the ECB, emphasizes that technological advances have outstripped regulatory measures concerning DAOs. This disparity has detrimental effects on the safety and sustainable growth of the DAO ecosystem.

In summary, the rapid development of DAOs occurs amid uncertain regulatory conditions, highlighting the urgent need for regulatory clarity to foster a secure and thriving environment for these organizations.