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Bill

HB 293

Corporations; limited liability decentralized autonomous organizations (LLDs).

2026 Regular Session Introduced by Dan Helmer

Virginia establishes Limited Liability Decentralized Autonomous Organizations (LLDs) as recognized legal business entities with liability protections and regulatory oversight for blockchain-based governance structures.

Subcommittee recommends reporting with substitute (7-Y 3-N)
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Bill Summary · HB 293

Legislative bill overview

HB 293 creates a new legal business entity type in Virginia called a Limited Liability Decentralized Autonomous Organization (LLD). This legislation establishes a regulatory framework allowing DAOs—organizations governed by smart contracts and blockchain technology rather than traditional hierarchical management—to operate as recognized legal entities with limited liability protections similar to traditional LLCs.

Why is this important

This bill positions Virginia as an early adopter of blockchain governance law, potentially attracting cryptocurrency and Web3 companies to the state and generating tax revenue. It addresses a current legal gap where DAOs operate in regulatory limbo, creating uncertainty for investors and participants about liability exposure and tax obligations.

Potential points of contention

  • Regulatory clarity gaps: Defining how tax obligations, securities laws, and employment regulations apply to decentralized, pseudonymous governance structures remains legally complex
  • Consumer protection concerns: DAOs' decentralized nature may make it difficult to hold anyone accountable for fraud or mismanagement, potentially exposing retail investors to losses
  • Federal-state coordination: Unclear how state-level LLD recognition interacts with potential future federal cryptocurrency regulation, creating compliance uncertainty

Compiled from official sources — confirm details with the bill’s official record.

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