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American CryptoFed DAO won’t have any institutional sales of its tokens, Zhou said. It would only have programmatic sales and other distributions, both of which Toress said weren’t securities in the Ripple case.

American CryptoFed DAO officials have suggested Wyoming’s stable token could help enable that, and, if successful, could mean a multibillion payday for the Cowboy State.

“The audited financial statements for American CryptoFed DAO cannot be done by an independent accounting firm before records to be audited can be generated through transactions of tokens,” American CryptoFed DAO’s Chief Financial Officer Xiaomeng Zhou told Cowboy State Daily. “This is a Catch-22 situation.”

Wyoming has a very large payday on the horizon if it can thread the needle on its own stable token, representatives of American CryptoFed DAO told the commission during public comments.

The SEC, meanwhile, has targeted the nation and Wyoming’s first legally recognized Decentralized Autonomous Organization, American CryptoFed DAO, with an enforcement action. DAOs are not banks. They are more like a digital club, whose members come together for a common purpose.

American CryptoFed DAO already has the endorsement of the Merchant Advisory Group, which represents many of the nation’s largest merchants. Between them, they have more than $4.8 trillion in annual sales at more than 580,000 locations nationwide.

“I understand that you sort of perceive a Catch 22 where the government is telling you … to register and then they make it impossible for you to register,” Judge Carol Fox said during a January hearing.

Moeller has been working with the Merchant Advisory Group, which represents a number of the nation’s largest merchants, on setting up a frictionless payment system that could bypass credit cards. That would make it cheaper for businesses and consumers to buy things in a way that remains secure and convenient.

Xiaomeng also told the judge that the SEC won’t allow the registration of potential securities while at the same time not proving whether or not the tokens are securities.

American CryptoFed, set up in Wyoming – a state that created laws specifically for the digital asset sector, aimed to challenge the SEC’s handling of digital assets stating its goal of issuing two digital assets, the Ducat and Locke, pursuant to the token definition in Token Safe Harbor Proposal 2.0 as suggested by SEC Commissioner Hester Peirce.

Among the frequent digital asset company representatives at the state Capitol is Xiaomeng Zhou, COO of American CryptoFed DAO. He and his partner Scott Moeller have testified to lawmakers that they brought their company to Wyoming because of its robust laws governing crypto and digital asset companies.

“We have a decent chance to win this case,” Chief Operating Officer Xiaomeng Zhou told Cowboy State Daily. “We are on track to open the door for Wyoming DAO to register with the SEC. American CryptoFed’s SEC public hearing is the first ever trial of a Wyoming DAO before the SEC’s Administrative Law Judge.”

It is not clear who has the upper hand at this point. Also of interest, according to American CryptoFed’s website, the Ducat and Locke tokens will be issued pursuant to the Token Safe Harbor Proposal 2.0 outlined by SEC Commissioner Hester Peirce…. Either way, the case is worth monitoring because it could influence the framework for how future token offerings are handled.

“The SEC has no legal basis to bring any legal actions against any entity and against any individual with allegations of ‘Unregistered Securities,’ when the actual pathway to registration with the SEC did not ever and does not currently exist,” he said. “All the pending SEC cases with allegations of ‘unregistered securities’ should be unlawful.

Participants in the DAO, including cities, shops, banks, crypto exchanges, and others, will utilise these tokens. Xiaomeng Zhou, COO of American CryptoFed that the DAO would not be represented by legal counsel while arguing its case against the SEC. According to an official statement, "Following the SEC’s guidelines, we have submitted our Notice of Appearance. By sending this letter, we informed the SEC that we are handling our legal representation in this matter."

American CryptoFed DAO LLC, which says its mission is to create a blockchain-based monetary system “with zero inflation, zero deflation and zero transaction costs," is a rarity among crypto collectives: It actually sought out regulation, not only registering as a decentralized autonomous organization, or DAO, under Wyoming law but also seeking approval from the U.S. Securities and Exchange Commission for the tokens it planned to offer to prospective members.

The potential payoff for the state of Wyoming if it’s successful in implementing this type of system for payments is huge, American CryptoFed CEO Scott Moeller testified to lawmakers Friday as the select committee considered the second go-round for the Wyoming Stable Token.

The first legally recognized decentralized autonomous organization (DAO) in the United States is taking on the Securities and Exchange Commission (SEC) over its 2021 token registrations.

“As a result, the SEC abused the Securities Act of 1933 to unlawfully delay, stop and obstruct American CryptoFed DAO’s legitimate disclosure through the Form S-1 Registration Statement.”

But, in a comment he sent by email to ThinkAdvisor, he argued: “The subject matter of the Section 8(d) Order has not yet existed. American CryptoFed DAO’s Form S-1 Registration Statement includes a ‘Delaying Amendment,’ which means that the American CryptoFed DAO’s Form S-1 is a subject matter of Section (a) and Section 8(b) of the Securities Act of 1933.

“CryptoFed is seeking withdrawal of the Registration Statement Form 10 because CryptoFed’s Locke token and Ducat token are not securities,” the filing read.

“In anticipation of the Wyoming Stable Token law, American CryptoFed DAO did build its business plan to use Wyoming Stable Token,” Chief Operating Officer Xiaomeng Zhou said via email this past week. The “Wyoming Stable Token is necessary to create an end-to-end token economy. Now, American CryptoFed DAO is planning to use USD Coin (USDC), another stable coin jointly issued by Circle and Coinbase, hoping Wyoming Stable Token can become a reality in the near future.”

Ah, those tiresome “audited financial statements”, those weary relics of the analogue world. In fact, reading the Securities and Exchange Commission’s ruling, it’s difficult to see how any DAO could actually meet the requirements of any financial regulator, anywhere, at the present time.

Once its registration with the Wyoming Secretary of State's office went through, which occurred almost immediately because the company was ready to operate, DAO status gave American CryptoFed the necessary structure to pursue federal recognition for its virtual currency. Although federal regulators have not yet granted their approval, at least Wyoming made it easy for them to incorporate here and then seek U.S. OK, said company executives, including CEO Scott Moeller.

American CryptoFed is a new kind of company spawned by the advent of cryptocurrency — one that claims, in a way, not to be a company at all.

The back-and-forth highlights the increasingly tense relationship between the cryptocurrency industry and the top U.S. markets regulator, which has taken a more aggressive position under Democratic leadership.

The new proposals, and others like them around the United States, threaten to erode a key distinction upholding the supremacy of the U.S. dollar over its would-be digital competitors: Americans can use U.S. dollars, but not cryptocurrencies, to pay their taxes.

American CryptoFed, LLC, is the first DAO to be registered with the state. Their mission is to create a monetary system without inflation and deflation. This goal is only made possible by the bridge between traditional finance and cryptocurrency that Wyoming has provided.

…but the DAO itself in almost all circumstances would not be able to produce financial statements prepared in accordance with generally accepted accounting principles. If the DAO does not have a definable business and truly is decentralized, then there may not be a management structure for which information can be provided.

The SEC's order substitutes "entities" for "persons" and adds the list of potential recipients to the registrant's statement. By this legerdemain, the SEC converts a statement that might be true in some cases into a statement that is false in all cases.

In September, CryptoFed took the unusual step of filing a registration statement on Form 10 for its Ducat and Locke tokens, while claiming that the tokens were not securities (“CryptoFed is registering Locke and Ducat tokens with the SEC as utility tokens, not as securities, for the purpose of disclosure”).

Orr also explained in the initial filing and subsequent correspondence with the SEC that the organization did not include financial statements in its filing because “CryptoFed does not have and will never have any revenue or costs.” She added that “CryptoFed’s zero cost operations can be achieved by using its own native tokens, just as the bitcoin blockchain BTCUSD, -1.75% and ethereum ETHUSD, -0.64% blockchain have both demonstrated by incentivizing their miners with their own native tokens.”

"The purported 'deficiencies' the SEC referred to were the lack of attributes inherent to securities," she said in a statement. "These are attributes that the two tokens (Locke and Ducat) of a decentralized blockchain-based CryptoFed DAO monetary system will never have."

Marian Orr, the chief executive of American CryptoFed, said in an emailed statement that the company rebutted point by point the deficiencies raised by the SEC in a letter on Oct. 12, adding that the company looks forward to future communications with the SEC, including through a public hearing.

The first decentralized autonomous organization (DAO) to be legally recognized in the U.S. has filed with the securities regulator as it seeks authorization for two new tokens. American CryptoFed DAO LLC filed form S-1 with the Securities and Exchange Commission (SEC) to register Locke and Ducat tokens.

American CryptoFed DAO is attempting to register two new digital tokens as publicly traded stablecoins and is currently awaiting regulatory approval, the exchange announced. If approved by the Securities and Exchange Commission (SEC), CryptoFed will become the first legally recognised and publicly traded decentralised autonomous organisation (DAO). No underwriters are named in connection with the offering.

American CryptoFed DAO, a Wyoming-based decentralized autonomous organization, has filed two forms with the United States Securities and Exchange Commission, or SEC, to launch two variants of inter-dependent stablecoins named Locke and Ducat.

Wyoming-based decentralized autonomous organization [DAO], CryptoFed has made an announcement regarding its recent filing. The DAO filed two forms with the United States Securities and Exchange Commission [SEC] to launch two versions of its interdependent stablecoins, Locke and Ducat.

There is an effort through the American CryptoFed to develop a merchant based stable coin ecosystem. The basis of this effort is to create a stable coin ecosystem driven by a collaboration of merchants, resulting in lower cost of acceptance. It is one way in which the development of digital currency could result in a more competitive payment acceptance landscape.

“Crypto and digital asset markets is penetrating fast, and there is a tremendous need for both well crafted laws and experienced, competent players in the ecosystem. When i look across the globe, Wyoming is the best place meeting these criteria. It has got visionary leaders on the regulatory front, and innovative blockchain and crypto players are already operational. This is a deadly combination.”

Although progress has been made in the ‘cryptofed’ sector. In July, the American CryptoFed DAO was legally recognised by the state of Wyoming as the country’s first decentralized autonomous organization. CEO of the American CryptoFed DAO, Marian Orr commented that the DAO law has created an opportunity for a “true digital currency with mass acceptance to be possible”.

On July 1, senate bill 38 took effect, Wyoming becomes the first state to allow for the establishment of decentralized autonomous organization (DAO).This led to the American CryptoFed to become the first DAO in the state, which plans to allow people to use the company's cryptocurrency, Ducats, instead of US dollars to purchase products.

The headline this week is that American CryptoFed was the first legally recognized Decentralized Autonomous Organization (DAO) in Wyoming and the nation. Earlier this year the Wyoming Legislature passed a Bill which offers legal protections to DAO's with the hopes that it would trigger blockchain businesses in the state. Marion Orr, CEO of American CryptoFed which is part of the digital currency effort, explained the concept to Wyoming Public Radio's Bob Beck.

The most significant recent development for the protocol was its selection to host the Ducat, a native algorithmic stable coin of the American CryptoFed DAO, which became the first legally recognized decentralized autonomous organization (DAO) in the United States after supportive legislation passed in the U.S. state of Wyoming. This development comes on the heels of a $10 billion investment by Block.one to build Bullish Global, an exchange based on EOSIO protocol and it points to a growing list of use cases for the delegated-proof-of-stake (DPoS) platform.

In other regulatory-related news, Wyoming, a U.S. state that has been highly favorable toward the crypto and blockchain industry, officially named the American CryptoFed DAO a legal entity — a first for any decentralized autonomous organization, or DAO.

The state of Wyoming has become the first in the US to approve and legally recognise a Decentralised Autonomous Organisation (DAO). The move became official when the American CryptoFed DAO received notice from the Wyoming Secretary of State’s office that it had been acknowledged as a legal business entity.

Wyoming is home to a number of novel financial institutions, including the first state-chartered crypto banks, Avanti as well as a subsidiary of Kraken, as well as American CryptoFed DAO, the nation’s first legal decentralised autonomous organisation (DAO), a parallel, crypto-based monetary system governed by machine learning and token holders, which began operating on 1 July.

Wyoming—the first US state to grant a charter to a crypto bank—has approved legal status for a decentralized autonomous organization (DAO), the American CryptoFed DAO, according to an announcement on Sunday. The organization, which has a mission to introduce a new monetary system, now becomes the first legally recognized DAO in the U.S.

The world finally has its first legal DAO, thanks to developments in the state of Wyoming. The American CryptoFED DAO, an organization dedicated to creating a monetary system resilient to fluctuations in value, received notice from the Wyoming Secretary of State’s office that its project had been officially recognized as a DAO in the United States.

The US state of Wyoming legally recognized The American CryptoFed DAO on Sunday, as per a release. The historic move made it the first-ever federal region to recognize a decentralized autonomous organization, or “DAO.”

The American CryptoFed DAO received notice from the Wyoming Secretary of State’s office on Tuesday recognizing it as a legal entity, according to a Sunday announcement.

Wyoming has legalized a decentralized autonomous organization (DAO) with effect from July 1, marking another in a series of steps that have made the state the most crypto-friendly jurisdiction in the United States.

Unlike federal F.I.A.T. paper currencies, the American Crypto Fed is the first decentralized autonomous organization (DAO ) a legal cryptocurrency, recognized by the state of Wyoming, the U.S., and the world.

With notice from the Wyoming Secretary of State’s office, the American CryptoFed became the first legally recognized decentralized autonomous organization (DAO) in the United States.