The action comes after the SEC’s chairman said it would be ‘very proactive’ in bringing the digital currency market under its investor protection framework.
However, the SEC alleged that the form lacked certain essential information, such as the two tokens and information about the company’s business, management and financial position, including audited financial statements. The SEC said the form also allegedly contained misleading statements and omissions.
The SEC said in its order that the registration form will automatically become effective from next Monday without any action. As with Wednesday’s actions, however, tokens remain restricted and untraceable until these proceedings are resolved.
American Cryptofed Chief Executive Marion Orr said in an emailed statement that the company denies the shortcomings pointed out by the SEC in a letter dated October 12, adding that the company looks forward to future communications with the SEC, including It is through public hearing.
“The alleged ‘deficiencies’ were noted by the SEC as a lack of inherent characteristics in the securities,” Ms. Orr said in the statement. “These are qualities that the two tokens of a decentralized blockchain-based Cryptofed DAO monetary system… will never have. The SEC declined to respond to our rebuttal, although we have repeatedly sought their written response.
The action comes after SEC Chairman Gary Gensler said last week that the regulator would be “very proactive” in bringing the digital currency market under its investor protection framework. Mr Gensler also said that the crypto market would not mature without extensive oversight.
Law firm partner Sujit Raman said, “The SEC’s action closely examines how the agency continues to bring entities into the fast-growing digital asset sector, including those that employ novel corporate structures. and claim to offer innovative financial products.” Sidley Austin LLP who previously served as Associate Deputy Attorney General in the Department of Justice.
Mengqi Sun [email protected] . Feather