BarnBridge DAO’s Crucial Decision
The BarnBridge decentralized autonomous organization’s (DAO) members held a pivotal vote regarding their approach to the United States Securities Exchange Commission’s (SEC) potential demands. A unanimous decision was reached on October 12, resolving to comply with any requirements set forth by the SEC, including the payment of necessary fines.
Delegates Nominated for Legal Dealings
Tyler Ward and Troy Murray have been selected as the DAO’s special delegates who will be responsible for interacting with the regulatory body. Douglas Park has been retained as the legal counsel for the DAO, entrusted with signing the final version of the Order on behalf of BarnBridge.
Selling Tokens: A Strategic Move?
The DAO’s Treasury has been granted permission by the voters to “sell all tokens that it is permitted to sell,” a decision likely made to prepare for any financial repercussions that may arise during the compliance process.
An Ongoing Investigation
Although there is no concrete information regarding the specifics of the SEC’s order to BarnBridge, it’s known that the investigation commenced in June 2023. Since then, BarnBridge has suspended all its activities, closing liquidity pools as a precaution.
Impact on BarnBridge’s Token
BarnBridge’s native token, BOND, has seen a significant decline in value since its last peak on July 25, dropping to $1.67 from a previous value of $21.69, as per the latest data from CoinGecko.
Historical Encounters with the SEC
In a related incident in November 2022, the SEC began administrative proceedings against the first legally recognized DAO in the U.S., American CryptoFed DAO, citing insufficient information in their Form S-1 registration statement. This historic event marks a significant checkpoint in the SEC’s ongoing scrutiny of DAOs and their operations.
BarnBridge DAO’s decision symbolizes a cautious and cooperative approach towards regulatory compliance, potentially setting a precedent for other DAOs in their interactions with regulatory bodies such as the SEC.