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

MeNews · 2026-04-02T09:22:18+00:00

Alabama has enacted 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 and to be organized around a common nonprofit purpose to promote decentralized governance development.

MeNews

2026-04-02 09:22:18

Abstract generation in progress

ME News update, April 2 (UTC+8), the governor of the U.S. state of Alabama signed the “Decentralized Unregistered Nonprofit Association Act,” becoming the second state after Wyoming to grant DAOs legal status. The act provides DAOs with legal status and limited liability protection, allowing them to have full corporate entity qualifications—to own property, sue and be sued, and enter into contracts—while shielding individual members and managers from personal liability. Eligibility requires that the DAO has at least 100 members and is formed for a common nonprofit purpose (such as governing a blockchain network or a smart contract system). a16z Crypto policy director said that decentralized governance is at the core of the future of crypto, and this bill provides decentralized communities with the certainty to build, govern, and scale in the real world. A similar bill in West Virginia has already passed the House of Representatives and is awaiting the governor’s signature. (Source: ChainCatcher)

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