American CryptoFed DAO Withdraws Locke, Ducat Token Registration Request

CryptoFed said the tokens are “not securities.”

AccessTimeIconJul 6, 2022 at 11:39 a.m. UTC
Updated Jul 6, 2022 at 3:04 p.m. UTC

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

American CryptoFed, a Wyoming-based decentralized autonomous organization (DAO), has withdrawn its request to register two tokens with the U.S. Securities and Exchange Commission as securities, a Tuesday filing shows.

“CryptoFed is seeking withdrawal of the Registration Statement Form 10 because CryptoFed’s Locke token and Ducat token are not securities,” the filing read.

The DAO, which describes itself as a “monetary system with zero inflation, zero deflation, zero transaction costs,” filed last year to register the tokens with the SEC for use in a secondary market and in refundable auctions at a higher value than their original purchase price from CryptoFed.

The SEC stopped the registration in November, saying the company had filed a “materially deficient and misleading registration form.”

The project had wanted to issue ducat, an algorithmic stablecoin, and locke, a governance token with a maximum supply of 10 trillion whose holders could propose strategies and vote on proposals concerning the DAO.

In the Tuesday filing, American CryptoFed said the tokens hadn't been issued or sold to users.

Last July, Wyoming legally recognized American CryptoFed. That determination came after the state became the first in the U.S. to recognize DAOs as a type of limited liability company.

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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.