The DAO behind BarnBridge Votes to Comply with SEC’s Potential Demands
The decentralized autonomous organization (DAO) that operates the decentralized protocol BarnBridge has conducted a voting process to determine how to respond to the potential demands of the United States Securities Exchange Commission (SEC). The voting concluded on October 12, with a unanimous decision to comply with the SEC’s potential demands and pay fines if necessary.
Tyler Ward and Troy Murray have been nominated as the special delegates of the DAO for handling interactions with the regulator, while Douglas Park will continue as the DAO’s legal counsel and sign the final version of the order on behalf of BarnBridge. In addition, voters have approved the DAO’s treasury to sell all tokens it is permitted to sell if required.
SEC Investigation and Response
No specific details regarding any orders from the SEC to BarnBridge are currently available. The SEC initiated its investigation into the DAO in June 2023, prompting BarnBridge to immediately pause all operations and close its liquidity pools. Ward did not disclose any specifics about the SEC’s investigation due to its non-public nature.
BOND Token Price Performance
The price of BarnBridge’s native token, BOND, has been gradually declining since reaching its peak on July 25 at $21.69. As of now, it stands at $1.67 according to CoinGecko. Its all-time high was $185.7 in October 2020.
BarnBridge’s “SMART Exposure” Application
In 2021, BarnBridge introduced its “SMART Exposure” application, which allows users to passively maintain a specific asset weighting in an ERC-20 token pair through automatic rebalancing.
SEC Proceedings Against American CryptoFed DAO
In November 2022, the SEC initiated administrative proceedings against the American CryptoFed DAO, which was the first legally recognized DAO in the U.S. The SEC stated that the DAO’s Form S-1 registration statement lacked crucial information such as audited financial statements and details about its business and management.
Hot Take: BarnBridge Decides to Comply with SEC’s Potential Demands
The DAO behind BarnBridge has unanimously voted to comply with any potential demands from the SEC and pay fines if necessary. This decision reflects the organization’s commitment to engaging with regulators and ensuring compliance with legal requirements. By appointing special delegates and legal counsel, BarnBridge is taking proactive steps to address the SEC’s investigation. The decline in BOND token price highlights the impact of regulatory scrutiny on cryptocurrency projects. However, BarnBridge continues to innovate with its “SMART Exposure” application, offering users a unique way to manage asset weighting. As the SEC pursues proceedings against other DAOs like American CryptoFed, it underscores the importance of regulatory compliance in the crypto industry.
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