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BarnBridge DAO Votes to Comply with SEC Order

The Decentralized Autonomous Organization (DAO) behind the decentralized protocol BarnBridge has held its vote on how to respond to the potential demands of the US Securities Exchange Commission (SEC).

The vote ended on October 12 with a unanimous decision to comply with the SEC’s possible demands and, if necessary, pay fines. Tyler Ward and Troy Murray have been nominated as the DAO’s special representatives to deal with the regulator. At the same time, Douglas Park remains the DAO’s legal counsel and will sign the final version of the order on behalf of BarnBridge. Voters also agreed to allow the DAO treasury to “sell any tokens it is permitted to sell” if necessary.

There is no information available regarding a specific order from the SEC to BarnBridge. The regulator’s investigation into the DAO began in June 2023. BarnBridge immediately suspended all its work and closed its liquidity pools. In his address to members, Ward did not provide details about the SEC’s investigation, saying it was “non-public in nature.”

Related: Vitalik Buterin raises concerns about DAOs approving ETH stake pool operators

The price of BarnBridge’s native token BOND has been gradually declining since its last peak on July 25, when it reached $21.69. According to CoinGecko, the price is $1.67 at the time of publication. It reached its all-time high of $185.7 in October 2020.

In 2021, BarnBridge announced its “SMART Exposure” application, which allows users to passively maintain a specific weighting between the assets in a given ERC-20 token pair through automatic rebalancing.

In November 2022, the SEC initiated administrative proceedings against the first legally recognized DAO in the United States, the American CryptoFed DAO. According to the SEC, American CryptoFed’s registration statement on Form S-1 was missing important information, such as audited financial reports and details of its business and management.

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