SEC Considers Suspending American CryptoFed Token Sale

To consider a stop order to prevent the registration of the offer and sale of its Ducat and Locke tokens, the Securities and Exchange Commission has opened administrative procedures against American CryptoFed, a decentralized autonomous organization (DAO) with headquarters in Wyoming.

The SEC stated in a statement released on Friday that the agency wanted “to determine whether a stop order should be issued to suspend the registration of the offer and sale of two crypto assets, the Ducat token and the Locke token.”

According to the regulator, American CryptoFed failed to provide the necessary details about the company’s operations, management, and financial standing in a Form S-1 registration statement submitted last year.

Companies that want to publicly offer new securities must first register using Form S-1. A Form 10 registration was also submitted by American CryptoFed in an effort to register the tokens as equity securities. However, the registrations were turned down.

The regulator claimed that the firm’s filing included other inconsistent claims about whether the tokens were securities as well as materially misleading statements and omissions.

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