Alabama Joins the DAO Party: Yellowhammer State Becomes Second in US to Grant Legal Personhood

Alabama has officially entered the DAO legal framework arena, becoming the second US jurisdiction after Wyoming to grant decentralized autonomous organizations formal legal recognition. Governor Kay Ivey signed the Decentralized Unincorporated Nonprofit Association (DUNA) Act (Senate Bill 277) into law, marking a significant milestone for crypto governance in the states. Apparently, the Yellowhammer State decided that if Wyoming gets to play crypto godfather, Alabama wants in on the decentralized action too.

The legislation, introduced by Republican Senator Lance Bell in February, passed the House 82-7 with 16 abstentions on March 17. Speaking about the bill's passage, a16z Crypto's head of policy and general counsel Miles Jennings noted that "decentralized governance is essential to crypto's future—it's one of the core constructs in market structure legislation." That's a lot of politicians nodding along to something about blockchain, which is either a sign of bipartisan crypto wisdom or collective head-scratching in committee.

The bill addresses a long-standing gap in crypto: how DAOs exist legally in the real world. Under the DUNA framework, qualifying DAOs can own property, enter into contracts, sue and be sued, while individual members and administrators receive limited liability protection. To qualify, a DAO must have at least 100 members united around a common nonprofit purpose, such