Alabama Governor Kay Ivey gave final approval to a bill that legally recognizes decentralized autonomous organization-like structures in the state.
According to Alabama’s official website for the Secretary of State, SB 277 — Decentralized Unincorporated Nonprofit Association Law — was signed into law on Wednesday.
The bill, authored by Republican Senator Lance Bell, establishes a legal framework for decentralized nonprofit organizations, allowing such entities to use blockchain technology and smart contracts for operation and governance.
According to the bill text, a decentralized unincorporated nonprofit association (DUNA) comprises at least 100 members who joined by mutual agreement. While it can own property and engage in profit-making activities, it must not distribute such profits to members.
Moreover, the bill stipulates that members of a DUNA generally have no personal liability for the association’s activities. The law is expected to go into full effect on Oct. 1, 2026.
More to come
By signing the bill into law, Alabama became the second U.S. state to give DAO-like entities a legal standing, following Wyoming’s legislation in 2024.
“Alabama is the second state after Wyoming to provide legal status and limited liability protections to DAOs, giving decentralized communities the certainty to build, govern, contract, and scale in the real world,” said Miles Jennings, Head of Policy at a16z Crypto. “This is forward-looking policymaking at its best.”
Jennings pointed out that several other U.S. states are making efforts to establish similar regulatory frameworks for DAOs. West Virginia’s House Bill on DUNA is also awaiting the final sign-off.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
