How are decentralized autonomous organizations treated legally?

There is no clear legal framework for DAOs. Since DAOs are treated as unincorporated entities, most of them have ducked to partnership status – putting unlimited liability to their members and generating a lot of legal friction. For instance, DAO members are often anonymous as there are no compulsory KYC/AML rules when joining. Since DAO members are from different countries, it is challenging to decide which jurisdictional laws to apply in the case of legal disputes. DAOs’ regulatory uncertainty can also cause internal federal issues, like the SEC’s 2017 investigative report on The DAO.