{"id":341067,"date":"2021-09-18T17:28:47","date_gmt":"2021-09-18T14:28:47","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/american-cryptofed-dao-seeks-us-sec-consent-for-stable-utility-tokens\/"},"modified":"2021-09-18T17:28:47","modified_gmt":"2021-09-18T14:28:47","slug":"american-cryptofed-dao-seeks-us-sec-consent-for-stable-utility-tokens","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/american-cryptofed-dao-seeks-us-sec-consent-for-stable-utility-tokens\/","title":{"rendered":"# American CryptoFed DAO seeks US SEC consent for stable utility tokens"},"content":{"rendered":"

“# American CryptoFed DAO seeks US SEC consent for stable utility tokens <\/strong>”
\n<\/p>\n

American CryptoFed DAO, a Wyoming-based decentralized autonomous organization, has filed two forms with the United States Securities and Exchange Commission, or SEC, to launch two variants of inter-dependent stablecoins named Locke and Ducat.<\/p>\n

According to CryptoFed\u2019s Form 10<\/a> submission, the tokens are awaiting their registration as utility tokens hosted on the in-house CryptoFed blockchain. However, SEC\u2019s Form 10 is used to register securities for potential trading on U.S. exchanges and is thus not intended for so-called utility listings.\u00a0<\/p>\n

The form submission entitles CryptoFed to automatically be recognized as a DAO in the U.S. after 60 days from the initial filing date, regardless of any outstanding SEC comments. <\/p>\n

CryptoFed\u2019s filing suggests that Ducat is both an inflation- and deflation-protected stablecoin that can be used for daily transactions and as a store of value. Locke is a governance token that will be used for stabilizing Ducat and creating rules for the ecosystem.<\/p>\n

According to CryptoFed CEO Marian Orr, Locke tokens will be distributed to municipalities, merchants, banks, crypto exchanges and other participants in the DAO. Drawing comparison to the existing financial system, Orr said:<\/p>\n

\u201cThe CryptoFed uses the part and parcel of buying and selling between Locke and Ducat to stabilize Ducat through ongoing open market operations similar to those of the Fed.\u201d<\/p><\/blockquote>\n

CryptoFed is also filing Form S-1<\/a> to register Locke and Ducat tokens to make them\u00a0tradeable and transferable. Running parallel to this SEC\u2019s review on Form S-1 filing, CryptoFed will also file Form S-8, which will grant the company \u201crestricted and untradeable Locke tokens to more than 500 persons.\u201d<\/p>\n

Until the app<\/a>roval of Form S-1 from SEC, both Locke and Ducat tokens will remain restricted, untradable and non-transferable.<\/p>\n

Related: <\/strong>SEC chair doubles down, tells crypto firms ‘come in and talk to us’<\/em><\/strong><\/p>\n

On Sept. 13, SEC Chair Gary Gensler urged crypto projects with securities to ensure investor protection by registering their firms with the authorities. <\/p>\n

Gensler envisioned a working policy framework for cryptocurrencies and believed that crypto can be a \u201ccatalyst for change\u201d for the financial sector. \u201cTo the extent that there are securities on these trading platforms, under our laws they have to register with the Commission unless they qualify for an exemption,\u201d he said.\u00a0<\/p>\n

As Cointelegraph reported in August, Gensler has identified the need for more robust crypto regulations in the United States. At the time, he listed seven crypto-related policy changes currently being examined by the SEC, including matters concerning token offerings, stablecoins and decentralized finance more general<\/a>ly.\u00a0<\/p>\n