The "South Carolina Decentralized Autonomous Organization Act" aims to establish a legal framework for decentralized autonomous organizations (DAOs) in South Carolina by adding Chapter 58 to Title 33 of the South Carolina Code of Laws. This chapter outlines the definitions, governance structures, and operational requirements for DAOs, including the necessity for an operating agreement that details governance, member rights, and the role of smart contracts. It specifies that DAOs must file articles of organization with the Secretary of State, adopt an operating agreement, and file annual reports to confirm continued operations and any significant updates.

Additionally, the bill clarifies that members of a DAO are generally not personally liable for the organization's debts or obligations, except in cases of fraud or misconduct. It also provides for the voluntary dissolution of a DAO and outlines the Secretary of State's authority to dissolve a DAO for non-compliance with reporting requirements. The act emphasizes that DAOs must adhere to applicable federal and state laws, including those related to securities and anti-money laundering. The provisions of this act will take effect upon approval by the Governor.