First official DAO in the US to wage a lawyerless legal battle against the SEC

First official DAO in the US to wage a lawyerless legal battle against the SEC

The first official decentralized autonomous organization (DAO) of the USA will face the US Securities and Exchange Commission (SEC) regarding its token registration in 2021.

In a statement to Cointelegraph, the American CryptoFed DAO announced that they will defend themselves without lawyers against the SEC, which claims that the DAO left some information missing and misrepresented in last year’s securities registration.

The DAO has registered its own and interconnected stablecoin Ducat and governance token Locke with the SEC in its 2021 application. The organizer took action to issue a cease and desist order, saying there were some problems with the registration.

American CryptoFed COO Xiaomeng Zhou confirmed that the DAO will pursue its case against the SEC without the support of a lawyer:

“We just filed the subpoena per SEC rules. So we told the SEC that we would represent ourselves in the case without an attorney.”

American CryptoFed also stated that it will request additional time to respond to the SEC’s Administrative Litigation Order. The DAO will then have 20 days to build defenses against the SEC.

The DAO shared details on the interconnected stablecoins Locke and Ducat in its September 2021 application. The two tokens were intended to be instruments to be used in the proposed Wyoming-based monetary system.

Ducat is an inflation- and deflation-proof stablecoin intended to be used in day-to-day transactions and as a store of value. Locke, on the other hand, is the governance token of the DAO and is used to maintain Ducat’s price stability and perform ecosystem management.

These tokens are designed for use by municipalities, merchants, banks, cryptocurrency exchanges and other participants of the DAO.

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