# kaal:claim:3652481-017

**Claim.** Under current securities laws, DAOs governed solely by smart contracts are restricted in their ability to pool assets and generate profit, because those laws limit their ability to fund ecosystem development and deploy capital efficiently.

**Type.** failure  **Support.** evidenced

**Holds when.**

- US securities law
- the DAO has no legal wrapper

**Source quote.**

> Under current laws, DAOs solely governed by smart contracts are restricted in their ability to pool assets and generate profit because securities laws limit their ability to fund ecosystem development and deploy capital efficiently.

**From.** Wulf A. Kaal, *Decentralized Autonomous Organizations – Internal Governance and External Legal Design* (2020), III.2 Regulatory Uncertainty, page 27

**Cite as.** Wulf A. Kaal, Decentralized Autonomous Organizations – Internal Governance and External Legal Design (2020). SSRN: https://ssrn.com/abstract=3652481

**Verify.** sha256 of source PDF `530b3a40c244aeca2eb4c53f4c9b4d6b2962bd6be9f92b4ebe17139c17f4c0e0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202020%20-%20Decentralized%20Autonomous%20Organizations%20%E2%80%93%20Internal%20Governance%20and%20External%20Legal%20Design.pdf

**Failure mode.** securities law capital constraint  (family: compliance-cost-and-barrier-to-entry)

**Topics.** securities-law, smart-contracts, dao

**Keywords.** securities-law, capital-formation, smart-contracts, dao-limitations

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3799320-012

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.