The digital asset business based in Wyoming has filed Form 10 and Form S-1 to register and trade Locke and Ducat tokens.
American CryptoFed DAO, a decentralized autonomous organization based in Wyoming, has filed two registration statements with the United States Securities and Exchange Commission, or SEC, to establish two variations of interdependent stablecoins called Locke and Ducat.
According to CryptoFed’s Form 10 submission, the tokens are currently pending registration as utility tokens stored on CryptoFed’s in-house blockchain. However, the SEC’s Form 10 is meant for the registration of securities for possible trading on US exchanges and is not intended for so-called utility listings.
After 60 days from the initial registration date, independent of any remaining SEC comments, the form submission qualifies CryptoFed to automatic recognition as a DAO in the United States.
According to CryptoFed’s petition, Ducat is a stablecoin that is both inflation- and deflation-protected and may be used for daily transactions and as a store of wealth. Locke is a governance token that will be used to maintain the stability of the Ducat ecosystem and to establish rules for its operation.
Locke tokens will be issued to municipalities, businesses, banks, cryptocurrency exchanges, and other DAO participants, according to CryptoFed CEO Marian Orr. Orr made the following analogy to the current financial system:
“The 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.”
Additionally, CryptoFed is filing a Form S-1 to register Locke and Ducat tokens, enabling them can be traded and transferred. Parallel to the SEC’s evaluation of the Form S-1 filing, CryptoFed will file a Form S-8 granting the firm “limited and untradable Locke tokens to more than 500 persons.”
Both Locke and Ducat tokens will remain limited, untradeable, and non-transferable until the Form S-1 is approved. On Sept. 13, SEC Chairman Gary Gensler urged cryptocurrency ventures that issue securities to protect investors by registering their businesses with the appropriate authorities.
Gensler envisioned a workable policy framework for cryptocurrencies and believed that the technology could serve as a “catalyst for transformation” in the banking sector. “To the extent that these trading platforms offer securities, they are required to register with the Commission unless they qualify for an exemption under our laws,” he explained.
As Cointelegraph revealed in August, Gensler has acknowledged the necessity for the United States to adopt more comprehensive crypto legislation. At the time, he highlighted seven crypto-related regulatory changes that the SEC is actively examining, including token offerings, stablecoins, and decentralized finance in general.
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