Can a DAO Legally Offer a ‘Synthetic Asset’ That Tracks a Real-World Stock?

Legally offering a synthetic asset that tracks a real-world stock is highly regulated. Such assets are often classified as swaps or security-based swaps, which fall under the purview of derivatives and securities regulators.

A DAO would need to comply with stringent reporting, clearing, and registration requirements, making it practically impossible to offer them legally without a centralized, licensed entity wrapper.