BarnBridge DAO Votes to Comply with SEC Demands

The decentralized autonomous organization (DAO) underlying the decentralized protocol BarnBridge has voted on how to respond to prospective demands from the United States Securities and Exchange Commission (SEC).

The vote concluded on October 12 with a unanimous decision to comply with prospective SEC demands and pay fines if necessary.

Tyler Ward and Troy Murray have been nominated as the DAO’s special delegates to the regulator. Douglas Park continues to serve as legal counsel for the DAO and will sign the final version of the order on behalf of BarnBridge.

Additionally, voters have authorized the DAO’s treasury to “sell all tokens that it is permitted to sell” if necessary. There is no information available regarding specific orders sent to BarnBridge by the SEC.

The regulator launched its investigation of the DAO in June 2023. BarnBridge promptly halted all operations and shut down its liquidity pools.

Due to the “non-public nature” of the SEC’s investigation, Ward did not provide any details during his address to the membership. The price of BarnBridge’s native token, BOND, has been progressively declining since its previous high of $21.69 on July 25.

CoinGecko reports that the price at the time of publication is $1.67. In October 2020, it attained its all-time high of $185.7.

In 2021, BarnBridge introduced its “SMART Exposure” application, which enables users to passively maintain a specific allocation between the assets in a specific ERC-20 token pair via automatic rebalancing.

In November 2022, the SEC initiated administrative proceedings against the American CryptoFed DAO, the first legally recognized DAO in the United States.

According to the SEC, American CryptoFed’s Form S-1 registration statement omitted essential information, such as audited financial statements and business and management details.