In the US, the DAO was equated with the jurisdiction of unincorporated associations

A California court has given decentralized autonomous organizations the status of an unincorporated association, which makes it easier for financial regulators to conduct claims work. In the understanding of the US Securities and Exchange Commission (CFTC), DAO is “a term used to describe a virtual organization embodied in computer code and performing its functions in a distributed ledger or blockchain.” According to the regulator, the deep definition of DAO does not carry a specific legal connotation, which significantly complicates control procedures.. Especially when intentional violations of the Commodity Exchange Act (CEA) are allowed, when DAO members are given the opportunity to conduct retail transactions in goods without complying with CEA requirements. In addition, when carrying out claims work, the CFTC regularly encounters allegations that “the regulator has no right to send any claims to cryptocurrency companies, since it cannot serve the DAO, and if it can, it is not able to do it properly.” However, California Judge William H.. Orrick (William H. Orrick disagreed with the opinion of the CFTC, believing that the regulator is sufficiently competent not only to control the activities of the DAO, but also to bring legal claims. Orrick justified his decision by saying that, in accordance with California law, the DAO is an unincorporated association.. In turn, the California Code of Corporations defines an unincorporated association as “an unincorporated group of two or more persons united by mutual agreement for the achievement of a common lawful purpose, whether organized for profit or not.” The judge explained that for the purposes of the DAO bylaws, the members were united by mutual agreement, and voting or non-voting constituted a legitimate purpose for an unincorporated association. Previously, the Marshall Islands government passed the Decentralized Autonomous Organizations Act, which gives DAOs the right to register as legal entities.