Crypto News – On how to respond to securities authorities, the decentralized autonomous organization is holding a referendum.
Breaking News: BOND Crypto Holders Decide to Vote on What to Do About SEC Actions – 2023
BarnBridge (Bond crypto) is facing fines in addition to SEC regulatory action. For sophisticated on-chain crypto investors, BarnBridge aimed to create fixed-income instruments. However, the team’s activities came to an end in July after they disclosed the SEC was looking into the project.
Therefore, there will be a vote within the community on what should be done. Last Tuesday, founders Tyler Ward and Troy Murray opened a vote on a proposal to give full authority to comply with the SEC’s order, including the payment of disgorgement.
BarnBridge Seems to Want to Cooperate with the SEC
Whatever law the initiative may have violated is unclear, but the SEC’s participation suggests BarnBridge was certainly offering a securities product to American investors. According to the current DAO vote, the project’s creators want to cooperate with regulators’ requests, which could result in the project’s closure. BarnBridge is not the first so-called decentralized autonomous organization (DAO) to get SEC action, but it may be the first to respond by requesting support from its community.
The proposal includes clauses that would empty the treasury and permit Ward and Murray to disperse the tokens, but it is unclear to whom they would be distributed. According to publicly available information on two wallets, BarnBridge’s treasury currently holds more than $200,000 in various cryptocurrencies. The idea also sets aside a portion of the money for legal fees.
BOND Crypto Gradually Crashed to the Ground
According to BarnBridge, it is a platform that provides interest rate swaps, enabling the conversion of any variable yield to a fixed rate. After the SEC launched an inquiry into it, several of its connected products, including liquidity pools, were suspended in July to reduce any additional potential legal responsibility.
At that time, the SEC’s inquiry was described as being “non-public” by Douglas Park, who had just been chosen to serve as BarnBridge DAO‘s legal counsel. Additionally, he had stated that until further notice, no one should be paid for whatever they do for the DAO or halt working on any protocol-related items. BOND, the native token of BarnBridge, has since lost over half of its value. Following that, in August, cryptocurrency exchange Coinbase shut down BOND trading on its system.
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