Case Analysis On Commodity Futures Trading Commission (CFTC) Vs. Ooki DAO (2022): A Comparative Study With India
- IJLLR Journal
- Sep 27
- 1 min read
Janvi Ahluwalia, UPES, Dehradun
ABSTRACT
Decentralized Autonomous Organizations (DAOs) are a new type of collective organization that disregards traditional boundaries of liability, corporate law, and regulatory supervision. They are controlled by smart contracts and distributed decision-making. The first attempt to give a DAO legal personality and accountability was made by the U.S. District Court for the Northern District of California in the historic case of Commodity Futures Trading Commission v. Ooki DAO. The court found that Ooki DAO was subject to regulatory enforcement because it was an unincorporated association under the Commodity Exchange Act, even though it had a decentralized and anonymous structure. The ruling was notable because it allowed non-traditional service of process through online community forums, imposed civil penalties, and granted interim relief—all of which demonstrate the willingness of judges to modify procedural law to fit decentralized ecosystems. Decentralization does not exempt organizations from compliance requirements, as this case establishes. This article examines the U.S. District Court for the Northern District of California’s decision in Commodity Futures Trading Commission v. Ooki DAO1, the first attempt to treat a DAO as an unincorporated association. It contrasts this approach with the current absence of DAO-specific regulation in India. The case study emphasizes the urgent need for regulatory clarity and a legal wrapper for DAOs in India by pointing out that Indian courts may compare DAOs to partnerships or associations.
Keywords: DAO, Commodity Exchange Act, decentralised finance, comparative regulation, India.
