Sue Or Be Sued: California Courts Lead Way Testing DAO Rights
The Bottom Line
- To date, only California courts have tackled thorny questions about the capacity of decentralized autonomous organizations (DAOs) to participate in litigation.
- DAOs have faltered when they haven’t argued their capacity to sue or be sued.
- There are concrete steps a DAO can take to shield and empower itself, and avoid jurisdictional complications.
As the cryptocurrency industry matures, inconsistencies remain as to the treatment of decentralized autonomous organizations, or DAOs, in regulatory proceedings and civil or criminal litigation. To date, the issue has only been litigated in California federal courts applying state law, and has yet to reach a full, merit-based disposition.
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