BarnBridge, a prominent crypto project, is now navigating through legal intricacies initiated by the US Securities and Exchange Commission (SEC). Consequently, the DeFi protocol recently launched a voting process, seeking guidance from its token holders on the best course of action. Significantly, the voters have voiced their unanimous support for the proposal presented by the project’s creators, Tyler Ward and Troy Murray.
The core of the proposal grants Ward and Murray the authority to undertake essential steps ensuring alignment with the SEC’s directives. Moreover, it encompasses provisions to meet any potential financial obligations the SEC stipulates. Additionally, Douglas Park, BarnBridge’s chosen legal counsel, has been authorized to sign the concluding version of any order representing the project.
Another notable aspect of the vote relates to financial matters. The DAO’s Treasury will cover Park’s legal bills linked to this investigation. Besides, the proposal allows for the disposal of permissible tokens, with Ward and Murray facilitating their distribution. Combined, these steps highlight a definitive intent by the project’s founders to comply with the regulator’s requirements fully. Hence, one can infer that BarnBridge is steering towards an operational wind-down.
However, for those unfamiliar, BarnBridge presents itself as a conduit for interest rate swaps, enabling the conversion of any variable yield into a fixed rate. But a few of its associated offerings, including liquidity pools, were put on hold back in July. This precautionary measure was taken to lessen any additional legal implications after the SEC initiated its probe.
At the time of the SEC’s announcement, Douglas Park labeled the investigation as “non-public”. He also emphatically stated the importance of halting all protocol-related activities. Moreover, he advised against compensating any individual associated with the DAO’s work until a clearer directive emerged.
