American CryptoFed Meets SEC Over Locke Token Registration and Crypto Rules

American CryptoFed DAO, the first Wyoming-approved regulated decentralized autonomous organization (DAO), has met with the U.S. Securities and Exchange Commission (SEC) to discuss crypto regulation and the registration process for its Locke governance token. The discussions mark another step in the organization's long-running effort to achieve regulatory compliance while advancing its vision for a decentralized monetary system.

According to an SEC Crypto Task Force memorandum, agency staff met with American CryptoFed founder members Scott Moeller and Xiaomeng Zhou. During the meeting, the organization confirmed it had recently converted into a Wyoming unincorporated nonprofit association under the state's UNA/DUNA Act, a move designed to strengthen its legal structure.

American CryptoFed also revealed that it filed a Form 10 with the SEC last month to register the Locke governance token as a reporting company. The filing follows the SEC's decision in February to dismiss earlier proceedings involving the organization while encouraging it to pursue appropriate registration pathways.

The DAO maintains that its Form 10 should automatically become effective 60 days after filing under the Securities Exchange Act of 1934, which would place the expected effective date around August 17. If approved, the organization would become a voluntary reporting entity, providing ongoing disclosures to improve transparency.

American CryptoFed plans to make Locke governance tokens available for trading once it receives regulatory clearance. Initial token holders are expected to be able to trade the asset on the Uniswap decentralized exchange. While acknowledging the compliance challenges associated with decentralized trading platforms, the organization argues that regulatory obligations can still be met through Forms 144, 3, 4, and 5 filings. It also cited existing SEC guidance indicating the agency generally does not intervene in disputes involving the removal of restrictive legends on securities.

The organization has pursued SEC registration for the Locke token since 2021 and says it has updated its framework to reflect evolving regulatory proposals, including Commissioner Hester Peirce's token safe harbor concept. American CryptoFed also believes the proposed Clarity Act could accelerate its goal of building a stablecoin-linked decentralized monetary system, with crypto-friendly lawmakers, including Senator Cynthia Lummis, pushing for the legislation's passage before the Senate's August 7 recess.