April 19, 2024
BarnBridge DAO’s Compliance Decision: Navigating the SEC’s Regulatory Landscape
Latest Cryptocurrency News

BarnBridge DAO’s Compliance Decision: Navigating the SEC’s Regulatory Landscape

The BarnBridge DAO recently concluded its voting process regarding how to respond to the potential demands from the United States Securities Exchange Commission (SEC). In a unanimous decision on October 12, the DAO opted to comply with the SEC’s potential requirements and indicated its willingness to pay fines if necessary. Two individuals, Tyler Ward and Troy Murray, were nominated as special delegates to engage with the regulator on behalf of the DAO, while Douglas Park continued to serve as the DAO’s legal counsel and would sign the final order on behalf of BarnBridge. Additionally, voters approved the DAO’s treasury to “sell all tokens that it is permitted to sell” if deemed necessary.

Notably, the specific details of the SEC’s order to BarnBridge are not publicly available. The SEC’s investigation into the decentralized autonomous organization commenced in June 2023, prompting BarnBridge to halt its operations and close its liquidity pools. During this period, Tyler Ward refrained from disclosing specific information about the SEC’s investigation due to its confidential nature.

The native token of BarnBridge, BOND, has experienced a gradual decline in price since its previous peak on July 25, when it reached $21.69. As of the latest data from CoinGecko, its value is currently at $1.67, a significant decrease from its all-time high of $185.7 in October 2020.

In 2021, BarnBridge introduced its “SMART Exposure” application, which enables users to automatically maintain a specific asset weighting within a designated ERC-20 token pair through periodic rebalancing.

In a related development, in November 2022, the SEC initiated administrative proceedings against the American CryptoFed DAO, the first legally recognized DAO in the United States. The SEC cited deficiencies in the Form S-1 registration statement submitted by American CryptoFed, such as the absence of audited financial statements and comprehensive information about the organization’s business and management.

Image by Wikimedia Commons 

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