Alabama becomes the second state in the U.S. to grant legal status to DAOs

MeNews · 2026-04-13T04:04:10+00:00

Alabama signed the "Decentralized Unregistered Nonprofit Association Act," becoming the second state to grant legal status to DAOs, providing corporate legal personality and liability protection. The act requires DAOs to have at least 100 members, formed for a common nonprofit purpose, to promote decentralized governance development.

MeNews

2026-04-13 04:04:10

Abstract generation in progress

ME News Report, April 2 (UTC+8), the Governor of Alabama signed the “Decentralized Non-Registered Nonprofit Association Act,” becoming the second state after Wyoming to grant legal status to DAOs. The bill provides legal recognition and limited liability protection for DAOs, allowing them to have full legal entity status, own property, sue and be sued, and enter into contracts, while individual members and managers are protected from personal liability. To qualify, a DAO must have at least 100 members and be organized for a common nonprofit purpose (such as governing a blockchain network or smart contract system). A16z Crypto policy chief stated that decentralized governance is at the core of the crypto future, and this bill offers decentralized communities certainty in building, governing, and expanding in the real world. A similar bill in West Virginia has been passed by the House and is awaiting the governor’s signature. (Source: ChainCatcher)

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