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Read. Follow. Verify.South Carolina establishes legal recognition and rules for decentralized autonomous organizations
Last action · January 13, 2026: Referred to Committee on Labor, Commerce and Industry (House Journal-page 107)Sponsor: M.M. Smith
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What This Bill Would Do
South Carolina establishes a legal framework recognizing s (DAOs) as limited liability companies, setting requirements for formation, governance, member liability, and dissolution upon gubernatorial approval. The legislation allows DAOs to operate via s or member-managed structures while imposing annual reporting duties and state court jurisdiction.
The bill creates formal state recognition for blockchain-based businesses, granting them limited liability protections similar to traditional corporations while subjecting them to state reporting rules and regulatory oversight.
- Decentralized autonomous organizations (DAOs) are emerging organizational structures that operate using smart contracts on blockchains, prompting several U.S. states to establish formal legal classifications for them. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Decentralized autonomous organization members
Members receive limited liability protections and must adhere to operating agreement mandates, annual reporting duties, and state court jurisdiction.
Secretary of State
The office is tasked with receiving articles of organization, processing annual reports, and overseeing the administrative dissolution of non-compliant DAOs.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
What is a Decentralized Autonomous Organization (DAO) under this bill?
Are members personally liable for the debts of a DAO?
What happens if a DAO fails to comply with reporting requirements?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
4 actions- Jan 13, 2026HouseCommitteeReferred to Committee on Labor, Commerce and Industry (House Journal-page 107)
- Jan 13, 2026HouseIntroducedIntroduced and read first time (House Journal-page 107)
- Dec 16, 2025HouseCommitteeReferred to Committee on Labor, Commerce and Industry
- Dec 16, 2025HouseIntroducedPrefiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Formal Recognition of Blockchain Entities
The legislation integrates decentralized blockchain structures directly into traditional corporate law by classifying DAOs as limited liability companies.
Connected Entities
Sources
www.scstatehouse.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy20Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz40Current news / social attention level
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