The decentralized autonomous organization (DAO) governing the decentralized protocol BarnBridge has concluded a voting process to determine its response to potential demands from the United States Securities and Exchange Commission (SEC).
The voting, which wrapped up on October 12, resulted in a unanimous decision by the DAO to comply with any potential demands issued by the SEC and to be prepared to pay fines if required. Furthermore, the DAO appointed Tyler Ward and Troy Murray as its special delegates responsible for engaging with the regulatory body. Douglas Park will continue to serve as the DAO’s legal counsel and will sign the final version of the order on behalf of BarnBridge. Additionally, the DAO members authorized the treasury to sell any tokens it is permitted to sell, should the need arise.
The specific demands or orders from the SEC to BarnBridge have not been disclosed. The SEC initiated its investigation into the DAO in June 2023. In response, BarnBridge suspended all its activities and closed its liquidity pools. Tyler Ward, addressing the members, refrained from sharing details regarding the SEC’s investigation due to its confidential nature.
The price of BarnBridge’s native token, BOND, has experienced a gradual decline since its peak on July 25, when it reached $21.69. At present, it is valued at $1.67, according to CoinGecko, in contrast to its all-time high of $185.7 in October 2020.
In 2021, BarnBridge introduced “SMART Exposure,” an application allowing users to actively maintain a specific weighting between assets in a given ERC-20 token pair through automated rebalancing.
Notably, 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 filed by American CryptoFed, including the absence of audited financial statements and detailed information about its business and management.
