- The Samuels v. Lido DAO decision accelerated the shift toward formal legal wrappers.
- Global competition continues as the United States and Switzerland shape their own frameworks.
- The Cayman Islands will implement the OECD Crypto-Asset Reporting Framework beginning in 2026.
The Cayman Islands have seen a sharp increase in registrations of foundation companies as Web3 projects reassess where to establish their legal entities.
New figures show strong year-on-year growth in these registrations, suggesting the jurisdiction is becoming a preferred destination for decentralized projects seeking legal clarity.
Growth began accelerating in late 2024 and has carried into 2025 as communities and developers look for structures that support expanding ecosystems.
This trend reflects how recent legal developments — particularly in the United States — have driven DAOs and Web3 organizations to pursue more predictable, liability-protecting frameworks.
Changes in DAO structures
Cayman foundation companies are increasingly used as the legal shelters for DAOs and as custodians of large Web3 network ecosystems.
Registrations exceeded 1,300 entities by the end of 2024, with more than 400 new organizations added in 2025.
Cayman Finance reported that many leading Web3 projects have chosen the jurisdiction, including at least 17 foundations overseeing on-chain treasuries that surpass the hundred-million mark.
These entities allow DAOs to enter into contracts, manage intellectual property, hire staff and engage with regulators without exposing token holders to personal liability.
The shift accelerated after the 2024 Samuels v. Lido DAO ruling, in which a U.S. federal court found that an unfettered DAO could be treated as a general partnership under California law.
That decision prompted many communities to reassess their structures.
The Cayman model offers separate legal personality and ownership features that help address that liability gap.
Combined with tax neutrality and a regulatory framework familiar to institutional allocators, the jurisdiction attracts projects seeking both compliance readiness and operational flexibility.
Global Web3 competition
International jurisdictions are positioning themselves for the next wave of Web3 growth.
The United States has repeatedly signaled ambitions to be a global crypto hub, notably during the Trump administration, yet few states explicitly recognize DAOs as legal persons.
This reality leaves many organizations navigating fragmented rules at the corporate level.
Switzerland remains a major center for Web3 foundations — Crypto Valley hosts over 1,700 active blockchain firms and has recorded more than 130% growth since 2020.
Foundations and associations have become an increasingly important part of that expansion, while projects continue to explore jurisdictions that best fit their long-term plans.
Compliance changes
The rise of Cayman-based Web3 foundations coincides with important regulatory changes.
The Cayman Islands have adopted the OECD’s Crypto-Asset Reporting Framework, with new Tax Information Authority regulations coming into force on January 1, 2026.
The framework introduces due diligence and reporting requirements for “Reporting Crypto-Asset Service Providers,” covering entities that exchange crypto for fiat or other crypto, operate brokerage services or provide custody services.
Those providers will need to collect taxpayer-identifying information from users, track detailed transactions and submit annual reports to the tax authority.
Legal advisers note that the rules are expected to apply primarily to service providers engaged in exchange or brokerage-type activity.
Structures that merely hold crypto assets — such as protocol treasuries, investment funds or passive foundations — are likely to fall outside the scope of this reporting under the current interpretation.
This suggests many DAO-affiliated foundations that act solely as ecosystem stewards or treasury vehicles can continue to benefit from Cayman legal certainty without incurring full reporting obligations, provided they do not operate exchange, brokerage or custody services.
As Web3 organizations mature and adapt to evolving compliance landscapes, the Cayman Islands appear poised to remain a central hub in the global distribution of decentralized governance structures.