BarnBridge Token Holders Vote Unanimously on SEC Compliance

BarnBridge is the latest crypto project to find itself in legal proceedings initiated by the US Securities and Exchange Commission (SEC). With possible financial penalties on the horizon, the project turned to token holders.

Details of any specific order issued by the financial regulator have not been disclosed.

Voters will decide on the SEC's ‘order'

The DeFi protocol began its voting process on October 10, which revolved around a proposal to ask its creators — Tyler Ward and Troy Murray — to take necessary steps to ensure compliance with SEC guidelines, among other things.

Voters unanimously approved the proposal, which includes paying all forfeiture amounts required by potential SEC demands and authorizing BarnBridge legal counsel Douglas Park to sign the final version of the order on behalf of the project.

Voters backed the Treasury to forfeit all park receipts related to the investigation, as well as remove all tokens authorized to be sold and distributed by Ward and Murray.

The latest DAO vote shows the founders' willingness to comply with the regulator's demands. Such a step basically means the complete decline of the work.

The fall of BarnBridge

BarnBridge describes itself as a platform that “offers interest rate swaps to convert any variable product into a fixed rate.” However, several of its related products, such as liquidity pools, were halted in July to minimize potential additional legal liability after the SEC opened an investigation into it.

Park, who was appointed legal counsel for the BarnBridge DAO at the time, said the SEC investigation was “non-public” in nature. He also said that all work on products related to the protocol should be stopped immediately and that individuals should not be compensated for their work for the DAO.

Since then, Barnbridge's native token, BOND, has lost nearly 50% in value. Crypto exchange Coinbase suspended BOND trading on its platform in August.