American CryptoFed pushes SEC on Locke token as Aug. 17 deadline looms

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.

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 while removing transaction costs through a stablecoin-linked financial network.

Legislative developments could also influence those plans. American CryptoFed argued that progress on the CLARITY Act would provide clearer rules 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, though the bill's timing and final outcome are not yet set.