Crypto Lobby Group Asks SEC to Ease Up on DAO Regulations | Pushback Grows
A rising number of crypto advocates are urging the SEC to lighten its stance on regulating decentralized autonomous organizations (DAOs). This call to action follows an ongoing debate about the definition of securities in the rapidly changing digital environment.
Demand for Decentralization Intensifies
The DeFi Education Fund and the Uniswap Foundation firmly argue that DAOs, when sufficiently decentralized, shouldn’t be classified as securities. They emphasize that if DAOs feature dispersed token holders actively participating in governance, the tokens should not fall under the SEC’s scrutiny based on the Howey Test. A recent summary noted, "DAOs with engaged governance shouldn’t have their tokens seen as securities."
Growing Community Concerns
Feedback from the crypto community on this matter has been largely supportive. Key sentiments include:
Community Ownership: Many believe that "small tokens owned and run by the community should not be treated as securities."
Growth Potential: Numerous comments underline that a lack of government interference is essential for the development of the crypto sector: "It’ll be good for growth,