Alabama becomes the second state in the United States to grant legal status to DAOs

By: rootdata|2026/04/02 14:42:00

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According to Cointelegraph, the governor of Alabama has signed the "Decentralized Non-Registered Non-Profit Association Act," becoming the second state to grant legal status to DAOs after Wyoming.

The act provides legal status and limited liability protection for DAOs, allowing them to have full corporate entity qualifications, own property, sue and be sued, and enter into contracts, while individual members and managers are exempt from personal liability. The eligibility requirements state that a DAO must have at least 100 members and be formed for a common non-profit purpose (such as governing a blockchain network or smart contract system). The policy director of a16z Crypto stated that decentralized governance is at the core of the future of crypto, and this act provides certainty for decentralized communities to build, govern, and scale in the real world. A similar bill in West Virginia has passed the House and is awaiting the governor's signature.

-- Price

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