Alabama Becomes Second State in the U.S. to Grant DAOs Legal Status

BlockBeats News, April 2nd, according to Cointelegraph, the Governor of the State of Alabama signed the "Decentralized Nonprofit Organization Act," becoming the second state after Wyoming to grant legal status to DAOs. The act provides legal status and limited liability protection to DAOs, granting them full legal entity status to own property, sue and be sued, enter into contracts, while individual members and managers are shielded from personal liability. Eligibility requirements mandate that a DAO must have at least 100 members and be formed for a common nonprofit purpose (such as governing a blockchain network or smart contract system).

The head of policy at a16z Crypto stated that decentralized governance is core to 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.