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Bill

SB 782

Corporations; limited liability decentralized autonomous organizations (LLDs).

2026 Regular Session Introduced by Saddam Salim

Virginia creates legal recognition for blockchain-based decentralized autonomous organizations as limited liability entities with state regulatory oversight and liability protections.

Continued to next session in Commerce and Labor (15-Y 0-N)
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Bill Summary · SB 782

Legislative bill overview

SB 782 creates a new legal entity type in Virginia called "limited liability decentralized autonomous organizations" (LLDs), which would allow blockchain-based organizations operating through smart contracts to register and operate as formal business entities. The bill establishes regulatory framework and liability protections for these crypto-native organizations while subjecting them to state corporate governance requirements.

Why is this important

This legislation addresses a growing gap between how decentralized autonomous organizations (DAOs) actually function in practice and existing corporate law, which doesn't accommodate distributed, code-governed entities. Passage would make Virginia a leading jurisdiction for DAO legitimacy, potentially attracting blockchain-based businesses and innovation, though it also creates new regulatory and tax administration challenges for the state.

Potential points of contention

  • Regulatory clarity gap: The bill attempts to apply traditional corporate liability concepts to organizations without centralized management, raising questions about who bears legal responsibility when smart contracts cause harm
  • Tax and enforcement complexity: DAOs' pseudonymous membership and borderless nature complicate tax collection, securities regulation compliance, and law enforcement compared to traditional entities
  • Consumer protection concerns: Early-stage DAO participants could face losses from smart contract bugs or exploits, and the liability shield may inadequately protect creditors and counterparties

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

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