Uniswap Foundation Leads Coalition Urging Treasury Secretary Bessent to Clarify Legal Framework for DAOs

The Uniswap Foundation led a coalition of 18 major cryptocurrency organizations in petitioning Treasury Secretary Scott Bessent for federal guidance on decentralized autonomous organizations (DAOs) compliance. They advocate for federal recognition of Wyoming's Decentralized Unincorporated Nonprofit Association (DUNA) framework, allowing DAOs to engage in contractual relationships and comply with tax obligations while shielding token holders from personal liability. The coalition has garnered bipartisan congressional support and warns that continued regulatory ambiguity risks pushing innovation away from US markets.

The Uniswap Foundation has spearheaded a coalition of 18 major cryptocurrency organizations in petitioning Treasury Secretary Scott Bessent for federal guidance on decentralized autonomous organizations (DAOs) compliance. The coalition, which includes prominent entities such as Polygon, Tally, and the Blockchain Association, advocates for the federal recognition of Wyoming's Decentralized Unincorporated Nonprofit Association (DUNA) framework. This framework allows DAOs to engage in contractual relationships, manage treasury funds, and comply with tax obligations while shielding token holders from personal liability [1].

The initiative has garnered bipartisan congressional support, with Senator Cynthia Lummis endorsing the framework and championing efforts to "build the legal foundation American innovators need to succeed." The coalition argues that the DUNA framework represents a milestone in demonstrating that compliance and decentralization can coexist within US legal frameworks [1].

The coalition requests three specific federal actions: recognition of good-faith DAO compliance efforts, engagement with communities piloting frameworks like DUNA, and provision of federal pathways, including safe harbors, interpretive guidance, or tailored rulemaking. The letter concludes that with thoughtful collaboration, the US can remain a home for internet-native innovation rooted in transparency, compliance, and open participation [1].

Uniswap Governance, one of the largest and most active DAOs in the world, has proposed adopting the DUNA structure as a test case for the broader ecosystem. The coalition emphasizes the competitive threat posed by other jurisdictions actively courting blockchain organizations. Continued regulatory ambiguity risks pushing innovation away from US markets as global competitors establish clearer frameworks for decentralized entities [1].

The Uniswap Foundation is leading an on-chain vote today to decide whether to wrap itself in "DUNI," a Wyoming-registered Decentralized Unincorporated Nonprofit Association (DUNA). If passed, DUNI would give the DAO formal legal standing, enabling it to sign contracts, retain vendors, settle tax obligations, and shield active participants from personal liability [2]. The Foundation is requesting $16.5 million in UNI to fund a legal defense reserve and settle potential US tax liabilities from prior years. A separate $75,000 UNI grant would go to Cowrie, a Wyoming-based firm that would serve as Administrator for tax filings and general admin [2].

The legal model itself is novel and has been passed in Wyoming, effective as of July 1, 2024. It offers DAOs the ability to own property, enter contracts, and gain indemnities, while prohibiting direct distributions in line with nonprofit status. This gives DAOs legal personality without turning them into corporations [2].

The vote has no practical impact on the fee switch or overhaul protocol economics but aims to give Uniswap Governance a legal skin. If it passes, the DAO can act with clarity, protection, and teeth, paving the way for fee capture, formal partnerships, and more resilient off-chain execution while preserving the DAO's on-chain supremacy [2].

References:
[1] https://cryptoslate.com/uniswap-foundation-leads-coalition-urging-treasury-secretary-bessent-to-clarify-legal-framework-for-daos/
[2] https://blockworks.co/news/uniswap-vote-wyoming-duna