United States of America: Adopted Utah Decentralized Autonomous Organizations Amendments Act (HB 357)

On 1 March 2023, the Decentralized Autonomous Organizations Amendments (DAO Act) was adopted by the Utah State Legislature. The Act will allow decentralised autonomous organisations, including systems relying on protocols such as blockchains or smart contracts, that are not registered as a for-profit corporate entity or a non-profit entity to be treated as the legal equivalent of a domestic limited liability company. Notably, the Act incorporates a technology gatekeeping function to identify an entity as a DAO and establishes that there are no implicit fiduciary duties owed by DAO participants unless they are explicitly stated.