According to TechFlow, CoinDesk reported that the Law Commission of England and Wales said that there is no need to enact special legislation for decentralized autonomous organizations (DAOs) at present, because existing laws already cover the relevant provisions of DAOs. The committee pointed out that it is difficult to adopt a single legislative approach due to the diverse structures of DAOs. According to the committee's report, if a DAO engages in "specific activities" related to "specific investments", it may be subject to the Financial Services and Markets Act 2000. In addition, if the governance tokens issued by the DAO have voting rights similar to shares and are used for investment, they will also be regarded as specific investments.

The committee also mentioned that DAOs may be subject to corporate taxation and recommended considering international tax frameworks. Nevertheless, a fully decentralized DAO could still face civil lawsuits, enforcement actions by regulators, or criminal prosecution.