Tuesday, November 30, 2021

US SEC halts crypto token registration for Wyoming DOA

The Takeaway:

The US Securities and Exchange Commission halted registration for a pair of digital tokens offered by Wyoming-based DAO American Cryptofed.

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The U.S. Securities and Exchange Commission (SEC) has halted registration for a pair of digital tokens offered by Wyoming-based decentralized autonomous organization (DAO) American Cryptofed. In a statement, the U.S. financial regulator accused the company of providing misleading information to investors in its regulatory filings. The SEC said that American Cryptofed “filed a materially deficient and misleading” form when it submitted an S-1 requesting registration for the Locke and Ducat tokens in September. 

 

SEC had doubts about whether or not the tokens were securities. 

The US SEC also said the submission failed to “contain certain required information about the two tokens as well as about American CryptoFed’s business, management, and financial condition, including audited financial statements.” The regulator also found that the form had “inconsistent statements” about whether or not the tokens were securities. Meanwhile, American Cryptofed CEO Marian Orr took issue with the SEC’s view that the tokens are securities. She said the company had been trying to discuss the issue with the SEC when the agency refused to respond to the firm’s rebuttal in October.

 

“SEC should take a more active role to collaborate with crypto firms.”

The frustrations expressed by the executives were anticipated by SEC Commissioner Hester Peirce, who believes the financial regulator should be more cooperative with crypto firms. She told the Wall Street Journal that the SEC should take a more active role in collaborating with crypto firms. Otherwise, the process of complying with SEC rules would be “tremendously hard” for startups, Peirce emphasized. “I think a lot of people are avoiding trying to build things in the SEC space precisely because it’s so difficult to navigate that,” Peirce said.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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