Alabama Grants Legal Status to DAOs Under New Nonprofit Association Law

Alabama signed a bill granting legal status to qualifying decentralized autonomous organizations under a nonprofit association framework. The law allows eligible DAOs to own property, sign contracts, and sue or be sued, while also providing limited liability protection. To qualify, applicants must have at least 100 members and pursue a shared nonprofit purpose. The measure makes Alabama one of the few U.S. states to formally recognize DAOs in law.

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