CryptoFed to De-Register Non-Security Tokens

CryptoFed said it would de-register the tokens since they are "not securities."

American CryptoFed, a Wyoming-based decentralized autonomous organization (DAO), has filed a withdrawal of its application to the U.S Securities and Exchange Commission (SEC) to register two tokens as securities, as shown in a Tuesday filing.

"CryptoFed is seeking withdrawal of the Registration Statement Form 10 because its Locke token and Ducat token are not securities," the filing said.

The DAO, which describes itself as a “monetary system with zero inflation, zero deflation, zero transaction costs” filed last year to register the tokens with the SEC for use in a secondary market and refundable auctions at a higher value than their original purchase price from CryptoFed.

The SEC suspended the registration of the company in November, claiming that it had filed a "fraudulent and misleading" S-1 form.

The project wanted to create ducat, a stablecoin that is based on an algorithm, and locke, a token with a maximum supply of 10 trillion that would allow holders to vote on and propose strategies for the DAO.

American CryptoFed stated in its July 5 filing that the tokens had not been issued or sold to users.

In July last year, Wyoming