First official DAO in the US to fight SEC without attorneys

The first official decentralized autonomous group (DAO) in the United States is taking over the Securities and Exchange Commission (SEC) over its 2021 token registrations. 

American CryptoFed DAO has informed Cointelegraph it would signify itself without an legal professional over SEC allegations that it omitted and misstated data in a securities registration final 12 months.

The DAO registered its native, interdependent stablecoin Ducat and governance token Locke in its 2021 submitting with the SEC, however the regulator has begun proceedings to situation a cease order citing a raft of issues with the registration.

In correspondence with Cointelegraph, American CryptoFed chief operation officer and organizer Xiaomeng Zhou confirmed that the DAO will argue its case in opposition to the SEC without authorized illustration:

“We simply filed the Notice of Appearance in accordance to the SEC’s guidelines. This letter implies that we informed the SEC that we’ll signify ourselves without attorneys in this case.”

American CryptoFed has additionally indicated that it’s going to file a movement to lengthen the deadline for its reply to the SEC’s Order Instituting Administrative Proceedings. This will open up a 20-day interval in which to construct its argument in opposition to the SEC’s transfer to cease American CryptoFed’s registration.

Related: Wyoming legally acknowledges first DAO in the United States

The DAO’s September 2021 submitting outlined the particulars of the inter-dependent stablecoins named Locke and Ducat, which function instruments for its proposed Wyoming-based financial system.

As Cointelegraph beforehand reported, the Ducat is an inflation and deflation-resistant stablecoin that shall be used for every day transactions and as a retailer of worth. Locke is the governance token of the DAO, which is meant to stabilize the Ducat and facilitate the administration of its ecosystem.

These tokens are supposed to be utilized by municipalities, retailers, banks, crypto exchanges and different members in the DAO.

By registering with the SEC, American CryptoFed would change into a reporting firm and would have to perform periodic reporting obligations to the regulatory physique.

In its whitepaper, CryptoFed famous that its native ecosystem tokens are supposed to be used as utility tokens. The DAO appeared to preempt any points with the SEC by registering each Ducat and Locke tokens as securities to ‘guarantee compliance with Securities legal guidelines and associated laws.’