tl;dr
**A Coalition of Crypto Powerhouses Calls for Federal Clarity on DAOs**
In a bold move to shape the future of decentralized finance, the Uniswap Foundation has united 18 major cryptocurrency organizations in a direct appeal to Treasury Secretary Scott Bessent, urging the U.S. government to provid...
**A Coalition of Crypto Powerhouses Calls for Federal Clarity on DAOs**
In a bold move to shape the future of decentralized finance, the Uniswap Foundation has united 18 major cryptocurrency organizations in a direct appeal to Treasury Secretary Scott Bessent, urging the U.S. government to provide clear federal guidance on how decentralized autonomous organizations (DAOs) can operate within existing legal frameworks. The letter, sent in early September, highlights a growing crisis: legal ambiguity is driving innovation abroad, threatening the U.S.’s position as a global hub for blockchain innovation.
At the heart of the coalition’s request is Wyoming’s 2024 Decentralized Unincorporated Nonprofit Association (DUNA) framework—a model that allows DAOs to sign contracts, manage funds, and meet tax obligations without exposing token holders to personal liability. The DUNA structure, the letter argues, offers a blueprint for balancing decentralization with compliance, a challenge that has long plagued DAOs in the U.S.
“DAOs in the U.S. have historically faced persistent legal uncertainty,” the letter states. “Many DAOs do not have clarity on whether basic undertakings, such as the ability to sign contracts, manage assets, or meet tax obligations, will expose participants to personal liability.”
The coalition’s push has already found bipartisan support. Senator Cynthia Lummis, a vocal advocate for blockchain innovation, has endorsed the DUNA framework, calling it a critical step in “building the legal foundation American innovators need to succeed.” The letter also references the President’s Working Group Report on Digital Assets, which mandates collaboration between the Treasury and IRS with blockchain nonprofits to facilitate U.S.-based DAO operations.
Uniswap Governance, one of the largest and most active DAOs globally, has proposed adopting the DUNA structure as a test case for the broader ecosystem. The coalition argues this could mark a turning point, proving that compliance and decentralization aren’t mutually exclusive.
The signatories range from industry giants like Polygon and Tally to emerging players such as ZKsync and the Solana Policy Institute. The coalition spans infrastructure providers, DeFi protocols, venture funds, and policy advocacy groups, underscoring a broad consensus that the U.S. risks falling behind if it doesn’t act.
**A Global Race for Innovation**
The letter warns that continued regulatory ambiguity could push U.S. innovation overseas. Jurisdictions like Singapore, Switzerland, and even parts of Europe are actively courting blockchain projects with clearer frameworks for decentralized entities. The coalition argues that without federal action, the U.S. risks losing its competitive edge in a rapidly evolving sector.
The letter outlines three key requests from the Treasury:
1. Recognize good-faith compliance efforts by DAOs.
2. Engage with communities piloting frameworks like DUNA.
3. Provide federal pathways—such as safe harbors or tailored rulemaking—to help DAOs navigate regulations.
“We can ensure that the U.S. remains a home for internet-native innovation rooted in transparency, compliance, and open participation,” the letter concludes.
As the debate over DAOs and their place in U.S. law intensifies, one thing is clear: the future of decentralized finance hinges on whether regulators can find a way to embrace innovation without sacrificing accountability. The question now is whether the Treasury—and Congress—will answer the call.
What do you think? Can the U.S. strike the right balance between fostering decentralization and ensuring legal clarity, or will it cede ground to more accommodating jurisdictions?