They allow communities to pool funds, make decisions, and run projects directly on the blockchain without a traditional company structure. Yet despite their potential, DAOs in the United States remain stuck in a legal gray zone.
This week, Devin Walsh, executive director of the Uniswap Foundation, announced that the foundation and more than 20 co-signers sent a formal letter to Treasury Secretary Scott Bessent and the IRS. The message was simple: DAOs need clear, legal pathways to operate responsibly in the U.S. The letter was minted on Zora as an NFT, with proceeds—already close to five thousand dollars—earmarked for the DeFi Education Fund.
Why DAOs Need Legal Recognition
DAOs are built on smart contracts, which are bits of code that automatically execute actions once conditions are met. They are governed by token holders who vote on decisions, ranging from funding projects to managing community treasuries. However, unlike corporations or nonprofits, DAOs often lack a legal identity. That means signing contracts, paying taxes, or even holding assets can put individual members at risk of personal liability.
To address this, the Uniswap Foundation has proposed the Decentralized Unincorporated Nonprofit Association (DUNA). Signed into law in Wyoming in 2024, the DUNA gives DAOs legal recognition while keeping onchain governance intact. It allows DAOs to handle funds, sign agreements, and follow tax rules, all without exposing every token holder to potential lawsuits. Senator Cynthia Lummis has publicly supported the effort, saying the U.S. must “build the legal foundation American innovators need to succeed.”
Today, the @UniswapFnd and 20+ co-signers are urging @USTreasury and @IRSnews to provide clear, legal pathways for DAOs seeking to operate responsibly in the US.
We coined the letter on @zora and will be sending any proceeds to @fund_defi [almost at $5k already!]
Why?
— Devin Walsh (@devinawalsh) September 2, 2025
Other DAOs are watching closely. Since Uniswap Governance floated the DUNA proposal, several groups have begun exploring similar frameworks. The trend mirrors a growing global push for regulatory clarity as countries compete to attract blockchain-based organizations.
More About DAOs
Nearly 50 billion dollars in trading volume flowed through Ethereum Layer 2 networks on the Uniswap Protocol last month. This sets a new all-time high. This surge highlights how users are turning to Layer 2s for faster and cheaper transactions, a trend that reflects growing adoption of scaling solutions across the Ethereum ecosystem.
Nearly $50B in Ethereum L2 volume last month
Marking a new all-time high on the Uniswap Protocol pic.twitter.com/et8Acf2TFu
— Uniswap Labs 🦄 (@Uniswap) September 2, 2025
The milestone underscores Uniswap’s role as a leading venue for decentralized trading, while showing that Layer 2 activity is quickly becoming a major driver of overall crypto market growth.
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