Alabama governor signs bill creating legal framework for DAO-like nonprofit entities
Alabama's governor approved a bill establishing a legal framework for decentralized autonomous organization-like nonprofits, following Wyoming.Summary
Alabama Governor Kay Ivey signed SB 277, the Decentralized Unincorporated Nonprofit Association Law, into law on Wednesday, legally recognizing DAO-like structures within the state. Authored by Senator Lance Bell, the bill allows decentralized nonprofit organizations to utilize blockchain technology and smart contracts for governance and operation. A Decentralized Unincorporated Nonprofit Association (DUNA) requires at least 100 members and can engage in profit-making activities without distributing profits to members, while also offering members limited personal liability. The law will take effect on October 1, 2026, making Alabama the second U.S. state, after Wyoming, to provide legal standing to such entities. Miles Jennings of a16z Crypto praised the move as “forward-looking policymaking,” noting similar efforts in other states like West Virginia.
(Source：The Block)