Crypto Project Pulls 10 Trillion Token SEC Filing

American CryptoFed just pulled its second attempt to register the Locke governance token. The Wyoming organization withdrew its Form 10 registration statement on August 3 after SEC staff found numerous material failures in the disclosure filing. The project planned to issue a massive supply of 10 trillion Locke tokens on the Ethereum blockchain as part of a proposal to replace traditional fractional reserve banking with a token based monetary system.

The project claims the current US monetary system relies too heavily on the Federal Reserve and deposit insurance. To fix this, American CryptoFed designed a network meant to operate without inflation, deflation, or transaction costs. The plan featured Locke for governance and a second token called Ducat for payments, though no Locke tokens had been issued or sold yet when the filing was pulled.

The withdrawal leaves the project without a clear path forward or a definitive ruling on whether its tokens count as securities. American CryptoFed stated it might submit a new filing later, possibly waiting for potential new SEC rules governing crypto offerings. For now, traders and observers will watch to see if future regulatory changes offer a workable framework for unconventional monetary projects.