Towards a European legal form for DAOs?

Florian Möslein and Daniel Ostrovski

Chapter 13 in Decentralized Autonomous Organizations in the Legal Landscape, 2025, pp 255-274 from Edward Elgar Publishing

Abstract: DAOs challenge traditional business structures, but current European regulation leaves them in a gray area. This legal uncertainty hinders DAO growth due to liability risks for members. Inspired by efforts of some US states to legally recognize DAOs, Europe has an opportunity to create its own framework. This would provide legal certainty for DAOs and investors and facilitate cross-border operations within the EU's single market. This chapter describes the current EU and US legal frameworks for DAOs and argues for the need for DAO regulation. It then discusses an EU approach to DAO regulation and whether DAOs should be regulated at the European or Member State level. A centralized approach offers consistency but might lack flexibility. Member State regulation allows for adaptation but risks fragmentation. The key is to find the right balance. A well-designed legal framework can unlock the potential of DAOs in Europe, fostering innovation and economic integration.

Keywords: Decentralized autonomous organization (DAO); DAO legal framework; US DAO regulation; European DAO regulation; European company law; DAO governance; Limited liability (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035341610
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