The Securities and Exchange Commission halts American CryptoFed DAO's registration of two digital tokens — called the Ducat and Locke — as securities. In the SEC's proceedings against the firm, the agency's Enforcement Division alleges that on Sept. 16, "American CryptoFed filed a materially deficient and misleading registration form." The form failed to contain required information about the two tokens as well as about American CryptoFed's business, management, and financial condition. Materially misleading statements and omissions included inconsistent statement about whether Ducat and Locke tokens are securities. It also said it would distribute Locke tokens to the public using a Form S-8, which is a registration form used for securities offered to employees through employee benefit plans. The Wyoming-based company didn't disclose that the tokens may not legally be distributed under a Form S-8, the SEC said. The SEC is seeking a ruling from an administrative law judge on whether
