American CryptoFed, Wyoming-approved first regulated DAO in the US, met with the US SEC to discuss approaches to addressing issues related to crypto regulation. The crypto organization also discussed its Locke governance token amid approval
The organization aims to launch a decentralized monetary system with zero inflation and deflation, zero transaction costs, and maximum employment. It would operate as a parallel system to the Federal Reserve.
American CryptoFed Meets with US SEC
According to a SEC Crypto Task Force memorandum, the SEC staff met with and representatives of American CryptoFed DAO founder members Scott Moeller and Xiaomeng Zhou.
During the meeting, American CryptoFed confirmed that it had converted to a Wyoming unincorporated nonprofit association under UNA/DUNA Act last month.
They also filed a Form 10 last month to register their Locke governance token as a reporting company. This follows a prior SEC dismissal of proceedings in February this year, encouraging the nonprofit to consider next steps regarding registration.
The organization argued that the Form 10 should become automatically effective 60 days after filing under the Securities Exchange Act of 1934, pointing to August 17. This would allow American CryptoFed to voluntarily become a reporting entity for ongoing disclosure purposes.
Plans to Offer Locke Tokens on Uniswap & Rule 144 Compliance
American CryptoFed plans to offer Locke governance tokens for trading after the SEC greenlights. Initial token recipients should be able to sell on Uniswap decentralized crypto exchange.
They acknowledge challenges with decentralized trading, but argue compliance is still possible via Forms 144, 3, 4 and 5 filings. They reference SEC guidance that the agency “will not normally intervene” in legend removal disputes.
Notably, American CryptoFed has sought SEC registration since 2021 for Locke governance token compliance. The organization has made significant changes, including changes related to Commissioner Hester Peirce’s token safe harbor proposal.
Moreover, the Clarity Act passing could further boost progress on creating a stablecoin-linked decentralized monetary system. Crypto-friendly Senators such as Cynthia Lummis signal passing the Clarity Act before the August 7 Senate recess.
