CDS Crypto News Decentralized Finance Project BarnBridge Initiates Unconventional Token-Holder Vote Amid SEC Legal Action
Crypto News

Decentralized Finance Project BarnBridge Initiates Unconventional Token-Holder Vote Amid SEC Legal Action

BarnBridge DAO Holds Unprecedented Token-Holder Vote in Response to SEC Inquiry

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Decentralized Finance Project BarnBridge Initiates Unconventional Token-Holder Vote Amid SEC Legal Action

Decentralized Finance Project BarnBridge Initiates Unconventional Token-Holder Vote Amid SEC Legal Action

Crypto News – BarnBridge, a cryptocurrency lending and stablecoin project, is currently facing legal action and potential fines from U.S. securities regulators. In a unique approach, the project is responding by conducting a token-holder vote.

The decentralized finance (DeFi) protocol started the voting process on Tuesday for a proposal that authorizes its founders, Tyler Ward and Troy Murray, to take necessary actions to comply with the Securities and Exchange Commission (SEC) order, including disgorgement payments.

Initially, BarnBridge aimed to create fixed-income products tailored for knowledgeable on-chain crypto investors. However, their efforts were halted in July when they revealed that the project was under investigation by the SEC.

The specific law that BarnBridge may have violated remains unclear. Yet, the SEC’s involvement suggests that the project might have been offering some form of securities product to U.S. investors, at least from the perspective of U.S. investigators. The ongoing DAO vote indicates the project founders’ intent to comply with the regulators’ demands, even if it means shutting down the project.

Decentralized Finance Project BarnBridge Initiates Unconventional Token-Holder Vote Amid SEC Legal Action
Decentralized Finance Project BarnBridge Initiates Unconventional Token-Holder Vote Amid SEC Legal Action 1

The proposal outlines provisions for liquidating the treasury and enabling Ward and Murray to distribute the tokens, though it does not specify the recipients. Public data on two wallets indicates that BarnBridge’s treasury holds over $200,000 in various cryptocurrencies. A portion of these funds is allocated for legal expenses, as proposed.

While BarnBridge isn’t the first decentralized autonomous organization (DAO) to face SEC action, it could be the first to seek approval from its community to proceed.

However, it’s important to note that the current vote seems more like a formality, with only one voter recorded at press time: “BarnBridge.eth,” which is a team wallet.

As of now, BarnBridge’s legal representative has not responded to requests for comments, and there has been no response from the SEC either.

Decentralized Finance Project BarnBridge Initiates Unconventional Token-Holder Vote Amid SEC Legal Action
Sources:Coin Desk

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