1 year ago
DeFi protocol BarnBridge said the U.S. Securities and Exchange Commission (SEC) is investigating its decentralized autonomous enactment (DAO) and squad member, according to a July 7 tweet.
To trim the protocol’s ineligible liability, Douglas Park, BarnBridge DAO’s elected ineligible counsel, advised that the protocol should cease the instauration of caller pools, and aged liquidity pools should beryllium closed.
Additionally, Park stated that each enactment connected BarnBridge-related products should stop, adding that radical would nary longer beryllium compensated for immoderate enactment concerning the protocol until further notice.
Park noted that the SEC’s probe was ongoing and non-public, constraining him from sharing further information.
According to its website, BarnBridge is simply a decentralized concern (DeFi) protocol that allows users to gain a fixed instrumentality connected their crypto plus deposits. At its November 2020 peak, the full worth of assets locked connected the protocol was astir $600 million. However, it has since dropped to $1.35 million, according to DeFillama data.
Source: DeFillamaMeanwhile, BarnBridge’s BOND tokens declined by astir 9% to $3.01 astatine the clip of writing, according to CryptoSlate’s data.
Community criticize SEC
The crypto assemblage has heavy criticized the SEC’s enactment against the comparatively chartless DeFi protocol.
AaveChan laminitis Marc Zeller said the fiscal regulator determination sends the clearest awesome that “it is safer to beryllium an offshore scammer than an honorable builder with a U.S. passport.”
Members of the crypto assemblage person interpreted the SEC’s probe into BarnBridge arsenic a motion that the regulatory assemblage isn’t focusing solely connected large organizations successful the cryptocurrency assemblage and are besides questioning the anticipation of forking the task without immoderate undesirable elements.
Over the past month, the SEC has accrued its scrutiny of the crypto industry, filing legal actions against large crypto firms, Coinbase and Binance. The regulator has labeled implicit 60 cryptocurrencies securities and highlighted the noncompliance of crypto firms with existing securities law.
The station Crypto assemblage questions SEC probe into DeFi protocol BarnBridge appeared archetypal connected CryptoSlate.
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