Key facts
- American CryptoFed DAO, the first US regulated DAO, met with the SEC.
- The DAO aims to create a decentralized monetary system with zero inflation/deflation.
- American CryptoFed filed a Form 10 to register its Locke governance token.
- The organization plans to offer Locke tokens on Uniswap after SEC approval.
- American CryptoFed has pursued SEC registration for its token since 2021.
American CryptoFed, the first DAO approved in Wyoming, has met with the U.S. Securities and Exchange Commission (SEC) to discuss regulatory approaches and the approval of its Locke governance token. The organization is developing a decentralized monetary system intended to operate with zero inflation and deflation, zero transaction costs, and maximum employment, functioning as a parallel system to the Federal Reserve.
According to a SEC Crypto Task Force memorandum, SEC staff met with American CryptoFed DAO founder members Scott Moeller and Xiaomeng Zhou. During the meeting, American CryptoFed confirmed its recent conversion to a Wyoming unincorporated nonprofit association and its filing of a Form 10 to register the Locke governance token. This follows a previous dismissal of proceedings by the SEC, which encouraged the nonprofit to consider registration steps. American CryptoFed argued that its Form 10 filing should become effective 60 days after submission, by August 17, allowing it to voluntarily become a reporting entity.
The DAO plans to offer Locke tokens for trading on the Uniswap decentralized exchange once the SEC grants approval. While acknowledging the complexities of decentralized trading, American CryptoFed believes compliance is achievable through filings like Forms 144, 3, 4, and 5, referencing SEC guidance on legend removal disputes. The organization has been seeking SEC registration for the Locke token since 2021, making significant adjustments, including those related to Commissioner Hester Peirce’s token safe harbor proposal.
Progress on the decentralized monetary system could be further advanced by the potential passage of the Clarity Act. Crypto-friendly Senators, including Cynthia Lummis, have indicated that the act might be passed before the Senate recess on August 7.