Alabama Grants Legal Status to DAOs, Following Wyoming's Lead

The U.S. state of Alabama has officially granted legal status to decentralized autonomous organizations (DAOs) under the Decentralized Unincorporated Nonprofit Association (DUNA) Act. This follows Wyoming’s 2024 legislation, making Alabama the second state to provide legal recognition and limited liability protections to DAOs. The DUNA Act, Senate Bill 277, was introduced in February by Republican Senator Lance Bell and passed by the House on March 17 with an 82-7 vote. Governor Kay Ivey signed the bill into law, according to a16z Crypto. Miles Jennings, head of policy and general counsel at a16z Crypto, emphasized the importance of decentralized governance for the future of crypto, stating it is a core construct in market structure legislation. The legislation addresses a long-standing legal uncertainty by granting DAOs the ability to own property, sue and be sued, and enter into contracts. To qualify, a DAO must have at least 100 members united for a nonprofit purpose, such as governing a blockchain network or smart contract system. Governance can operate entirely through blockchain technology, with voting, proposals, and consensus mechanisms stored on-chain. The move is expected to provide legal certainty for decentralized communities, enabling them to build, govern, and scale in the real world. Jennings noted that as federal crypto legislation progresses, effective domestic legal structures are essential for builders. A similar DUNA bill in West Virginia, introduced by Representative Tristan Leavitt, passed the House on March 4 and awaits the governor’s signature. Wyoming’s DUNA Act was signed into law in March 2024, and the state recognized the first legally recognized DAO in the U.S. in July 2021. As of 2025, over 13,000 DAOs exist globally, with collective treasury assets under DAO control surpassing $24.5 billion, according to CoinLaw. The average DAO treasury size is around $1.2 million, and Ethereum and its layer-2 networks host over 85% of DAOs, reported PatentPC in March.