RI H7843

Decentralized autonomous organizations (DAOs) may register as limited liability companies in Rhode Island, with articles of organization required to include the on-chain governance contract address, registered agent, member rights, and voting procedures

Member liability is limited to each member's financial contribution unless fraud or willful misconduct is proven; governance may occur through smart contracts or digital consensus mechanisms

DAOs must file annual reports with the Department of Business Regulation disclosing governance status and technical modifications, and must comply with state cybersecurity standards

Establishes a limited-term regulatory sandbox allowing DAOs to pilot public and private projects, including infrastructure and financing initiatives, while maintaining anti-money laundering, know-your-customer, and FinCEN compliance

DAOs may raise capital through private placements of membership interests or governance tokens under Regulation D and may finance infrastructure projects and public-private partnerships through on-chain mechanisms