DAO Legislation in Texas

Wyoming took the digital asset world by storm when it became the first state to formally authorize the creation of decentralized autonomous organizations (DAO) under state law. Other jurisdictions have been scrambling to pass their own DAO legislation ever since. 

House Bill 3768 is the Texan answer. The legislation would update Texas code to provide for the legal registration of DAO’s in the Lone Star State. The bill also provides helpful definitions and clarity for terms like “digital asset” and “smart contract.” That may seem like legal minutiae, but proper definitions are critical for ensuring regulatory clarity. 

House Bill 3768 successfully passed the Texas House but has yet to receive full consideration in the Senate. The Crypto Freedom Alliance of Texas hopes the bill makes additional progress when the Texas legislature reconvenes in 2025.