Alabama has taken a major step into the future of blockchain innovation by officially recognizing Decentralized Autonomous Organizations (DAOs) as legal entities. Following in the footsteps of Wyoming, the state has become the second jurisdiction in the United States to adopt such a framework under the Decentralized Unincorporated Nonprofit Association (DUNA) Act.
A new legal framework for decentralized governance
Industry leaders have welcomed the development. a16z Crypto policy head Miles Jennings described decentralized governance as a foundational element of the crypto ecosystem, emphasizing that legal clarity is essential as federal regulation continues to evolve.
Effective policy can catch up to technology.
Today, Alabama achieved exactly that by enacting the DUNA Act.
Decentralized governance is essential to crypto’s future—it’s one of the core constructs in market structure legislation.
But market structure doesn’t solve legal… https://t.co/jM6TtmNAYc
— miles jennings (@milesjennings) April 1, 2026
The legislation, formally known as Senate Bill 277, was introduced in February by Senator Lance Bell. After securing overwhelming support in the House with an 82-7 vote, the bill was signed into law by Governor Kay Ivey.
The new law gives DAOs a long-awaited legal identity, addressing a critical gap that has existed since the rise of blockchain-based communities. With this move, DAOs in Alabama can now operate with clarity and legitimacy in the traditional legal system.
What the law means for DAOs and builders
Under the DUNA Act, DAOs that meet certain criteria, such as having at least 100 members united for a nonprofit purpose, can register as legal entities. These organizations can function entirely through blockchain systems, with governance processes like voting and proposals recorded onchain.
Importantly, the law allows DAOs to own property, enter into contracts, and participate in legal proceedings. At the same time, it shields members and administrators from personal liability, a key concern that has discouraged wider adoption in the past.
The momentum is not limited to Alabama. A similar bill is progressing in West Virginia, while Wyoming continues to lead as an early adopter, having recognized DAOs since 2021.
Globally, DAOs are already a significant force. With over 13,000 DAOs operating globally, collectively overseeing more than $24.5 billion in treasury assets as of 2025, according to CoinLaw. According to a March report by PatentPC, the typical DAO treasury holds approximately $1.2 million, with over 85% of these organizations built on Ethereum or its layer-2 ecosystems.
Alabama’s decision signals growing institutional confidence in decentralized governance and could accelerate broader adoption across the United States.
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