• Tue. May 28th, 2024

BarnBridge DAO Community Votes To Obey US SEC Demands

Steve Kornacki

BySteve Kornacki

Oct 12, 2023

The BarnBridge’s decentralized autonomous organization (DAO) team recently voted on what to do if the United States Securities and Exchange Commission (SEC) makes specific requests on the protocol. The voting ended with a unanimous decision to conform to the regulator’s potential requests.

Taking A Unified Stance

The BarnBridge DAO completed its voting process on October 12 in anticipation of possible scrutiny from the SEC. The DAO unanimously agreed to cooperate with any potential requests from the securities regulator and pledged to pay fines where applicable.

Tyler Ward and Troy Murray were selected as the DAO’s special delegates to help steer and navigate this regulatory path. On the other hand, Douglas Park will continue to serve as the DAO’s legal advisor, tasked with finalizing the order on BarnBridge’s behalf.

In addition, DAO members have permitted the treasury to liquidate tokens, but only based on the community’s applicable regulations. However, the protocol has not disclosed specifics about the regulator’s orders.

The regulator began investigating the DAO in June 2023, prompting BarnBridge to cease all operations and close its liquidity pools immediately. While addressing members, Ward stressed that no further information could be released due to the confidentiality of the ongoing investigation.

The unanimous decision reflects the company’s commitment to transparency and willingness to cooperate with the SEC.

BarnBridge’s BOND Token Sees Price Fluctuation

The DAO’s native token, BOND, has been steadily depreciating since attaining a high of $21.69 on July 25. According to current CoinGecko data, BOND’s market value is $1.61, losing 3.4% in the last 24 hours.

Remarkably, the asset had previously risen to $185.7 in October 2020. 2021 also signified a progressive year for the DAO following BarnBridge’s unveiling of its “SMART Exposure” application.

The product’s innovative feature allows users to easily maintain a predetermined balance between assets having a specific ERC-20 token pair. The system achieves this balance through an automated rebalancing mechanism, significantly simplifying user experience.

SEC Tackles America’s Pioneer DAO Platform

Meanwhile, the SEC also instituted administrative action against the US’s first DAO, the American CryptoFed DAO. The regulator’s move marks a significant development in the legal landscape surrounding decentralized autonomous organizations.

It also highlights the regulatory scrutiny that DAOs are now subject to as they attempt to explore the mainstream financial ecosystem. According to the regulator, it initiated administrative proceedings due to alleged deficiencies in the American CryptoFed DAO’s Form S-1 registration statement.

Notably, the SEC said the filing needed more critical components, such as audited financial statements and exhaustive information about the company’s operational aspects and leadership. The legal action has sparked a broader discussion about the regulatory framework for DAOs, which gained traction due to their innovative approach to decentralized governance and decision-making.

In addition, the American CryptoFed DAO case has set a precedent for treating such entities under existing securities laws. The case will transform the way regulators interact with DAOs, shedding light on the requirements for compliance and transparency in this emerging financial landscape.

Steve Kornacki

Steve Kornacki

Steve Kornacki, a respected author at Big Trends Signals, uses his deep online trading acumen to create comprehensive guides and balanced reviews, empowering traders in their digital pursuits.

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