Alabama Recognizes Decentralized Autonomous Organizations (DAOs) as Legal Entities

The Alabama state legislature has made a significant move in the world of blockchain and cryptocurrency by passing a bill that recognizes Decentralized Autonomous Organizations (DAOs) as legal entities. The law, which will take effect on October 1, 2026, defines DAOs and outlines their rights and responsibilities.

The bill was sponsored by Republican Senator Lance Bell and is seen as a major development in the recognition of blockchain technology at the state level. Alabama joins Wyoming as the only US state to have recognized DAOs as legal entities under state law.