# kaal:claim:3799320-012

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

**Type.** failure  **Support.** argued

**Holds when.**

- DAOs governed solely by smart contracts
- current U.S. securities law

**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, *A Decentralized Autonomous Organization (DAO) of DAOs* (2021), Regulatory Uncertainty, page 10

**Cite as.** Wulf A. Kaal, A Decentralized Autonomous Organization (DAO) of DAOs (2021). SSRN: https://ssrn.com/abstract=3799320

**Verify.** sha256 of source PDF `c3dff852f2d3f04718c829a24189309a7db4d92d84f6045d3d4f562d87c03e63` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20A%20Decentralized%20Autonomous%20Organization%20%28DAO%29%20of%20DAOs.pdf

**Failure mode.** Securities law capital constraint  (family: innovation-chilling)

**Topics.** securities-law, smart-contracts, governance-design

**Keywords.** securities-law, capital-formation, ecosystem-funding, smart-contract-governance

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3652481-017

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