BarnBridge DAO Seeks Votes on SEC Probe Response
The BarnBridge DAO, which operates a small DeFi protocol, has initiated a voting process to determine its response to an ongoing Securities and Exchange Commission (SEC) probe. The voting began on Tuesday and focuses on whether the co-founders of BarnBridge, Tyler Ward and Troy Murray, should be granted the authority to comply with the SEC’s order against the organization.
The decision to conduct the vote follows an announcement by BarnBridge attorney Douglas Park in July, stating that the SEC was investigating the company. In response, Park recommended suspending all work related to BarnBridge products and withholding compensation for DAO members until further notice.
Among the key questions being put to vote are whether BarnBridge should pay disgorgement as stipulated by the SEC’s order and whether it should sell permitted tokens and allow Ward and Murray to distribute them. The deadline for votes is October 12. The SEC has declined to comment on the matter.
SEC Crackdown on DAOs
The SEC has previously taken legal action against decentralized autonomous organizations (DAOs). One such case involved American CryptoFed earlier this year. The agency accused American CryptoFed of failing to provide necessary information about its business management and financial condition. Additionally, there were material misrepresentations and omissions concerning whether the tokens were considered securities.
Hot Take: BarnBridge DAO Faces Crucial Decision in Response to SEC Probe
BarnBridge DAO is currently grappling with a crucial decision on how it should respond to an ongoing Securities and Exchange Commission (SEC) investigation. With voting underway, members of the DAO are determining whether co-founders Tyler Ward and Troy Murray should be given the authority to comply with the SEC’s order against BarnBridge. This vote will impact crucial aspects such as disgorgement payments and token distribution. The outcome of this vote will have significant implications for BarnBridge’s future operations and the broader DeFi industry, as regulators continue to scrutinize the space. All eyes are on the DAO as it navigates this challenging regulatory landscape.
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