BarnBridge DAO votes over response to SEC probe

BarnBridge DAO, which runs a small DeFi protocol, opened a voting process over how it should respond to a Securities and Exchange Commission probe. 

Voting opened on Tuesday on whether BarnBridge co-founders Tyler Ward and Troy Murray should have the "authority to undertake all actions necessary to comply with the Order of the Securities and Exchange Commission against BarnBridge.” 

The move came after BarnBridge attorney Douglas Park told DAO members in July through Discord that the SEC was investigating. At the time, Park said that all work on BarnBridge-related products should be halted and that people shouldn’t be compensated for work they do for the DAO until further notice. 

BarnBridge is now asking whether it should pay disgorgement, as required by the SEC’s order, and whether it should “sell all tokens that it is permitted to sell and allow to Ward and Murray to distribute the tokens.”

Votes are due on Oct. 12. The SEC declined to comment. 

SEC’s crackdown on DAOs 

The U.S. regulator has taken legal actions before against decentralized autonomous organizations, or DAOs. 

The agency said earlier this year that American CryptoFed failed to provide required information about its business management and financial condition. It also had materially misleading statements and omissions, including inconsistencies on whether the tokens are securities, the SEC said.