American CryptoFed presses SEC as Locke token nears key deadline

American CryptoFed has urged the U.S. Securities and Exchange Commission to recognize its Locke governance token registration ahead of an Aug. 17 deadline that the organization says should take effect automatically under federal securities law.

According to a memorandum published by the SEC’s Crypto Task Force, agency staff recently met with American CryptoFed DAO founders Scott Moeller and Xiaomeng Zhou to discuss the nonprofit’s latest registration efforts, its governance token, and legal questions surrounding decentralized organizations.

The meeting also covered the group’s long-running push to bring the Locke token under the SEC’s reporting framework.

Locke token registration moves toward Aug. 17 milestone

During the meeting, American CryptoFed told SEC staff that it converted into a Wyoming unincorporated nonprofit association under the state’s UNA/DUNA Act last month. The organization said the restructuring forms part of its latest effort to satisfy regulatory requirements after years of engagement with the agency.

The nonprofit also confirmed that it filed a Form 10 last month to register the Locke governance token as a reporting company under the Securities Exchange Act of 1934.

According to American CryptoFed, the filing should become automatically effective 60 days after submission, setting Aug. 17 as the expected date unless the SEC takes action beforehand.

The filing follows the SEC’s decision in February to dismiss earlier administrative proceedings involving the organization. As described in the Crypto Task Force memorandum, the dismissal encouraged American CryptoFed to consider alternative registration steps rather than ending its pursuit of federal compliance.

American CryptoFed has sought SEC recognition for the Locke token since 2021. During that period, the organization said it revised parts of its proposal, including changes influenced by SEC Commissioner Hester Peirce’s proposed token safe harbor framework, which was designed to give qualifying blockchain projects additional time before securities laws fully apply.

DAO outlines trading and disclosure framework

Looking beyond registration, American CryptoFed told SEC staff it plans to make Locke governance tokens available for trading after receiving regulatory clearance. Initial recipients of the token would be able to trade through the Uniswap decentralized exchange, according to the organization’s presentation.

While acknowledging the compliance challenges associated with decentralized trading, American CryptoFed argued that required disclosures could still be maintained through existing reporting obligations.

Its presentation pointed to Forms 144, 3, 4 and 5 as mechanisms for meeting insider and securities reporting requirements, while also citing SEC guidance stating that the agency “will not normally intervene” in disputes involving the removal of restrictive legends from securities.

Separate from the registration process, American CryptoFed continues to promote its proposal for a decentralized monetary system operating alongside the U.S. Federal Reserve. The organization has said the model is designed to eliminate inflation and deflation, remove transaction costs, and support maximum employment through a stablecoin-linked financial network.

Legislative developments could also influence those plans. American CryptoFed argued that progress on the CLARITY Act would provide a more defined regulatory framework for digital assets.

Separately, crypto-friendly lawmakers, including Senator Cynthia Lummis, have indicated they want the Senate to advance the legislation before the chamber begins its August recess, although the bill’s timing and final outcome remain uncertain.