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On Friday, the US Securities and Exchange Commission (SEC) filed settled charges against the Solana dApp Mango DAO and Blockworks Foundation concerning the unregistered offering and sale of $70 million in MGNO tokens, which the agency classifies as crypto asset securities.
*SEC CHARGES MANGO MARKETS FOR UNREGISTERED MNGO TOKEN SALE
*WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MANGO MARKETS HAVE AGREED TO SETTLE THE SEC CHARGES AND HAVE AGREED TO DESTROY THEIR MNGO TOKENS— — (@infinityhedge07) September 27, 2024
Mango DAO, without admitting or denying the claims, consented to pay the SEC $700,000 and to eliminate their MNGO tokens.
The decentralized autonomous organization (DAO) will also request exchanges to cease trading of MNGO tokens.
The SEC additionally charged Mango DAO developer Mango Labs LLC for participating in unregistered broker activities, which were also settled.
In a statement, the SEC maintained that the DAO designation of Mango Market did not alter the requirement for MNGO tokens to be registered.
“Our perspective has been that the designation ‘DAO’ does not alter… whether their activities require registration,” stated the SEC’s Acting Chief of the Crypto Assets and Cyber Unit.
Mango DAO – Another Casualty of the SEC’s Enforcement Actions
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Mango DAO represents the latest crypto entity to encounter issues with the SEC, which has been actively seeking to assert its authority over the sector since 2022, aiming to address what it perceives as widespread noncompliance with securities regulations.
In a recent interview with CNBC, SEC Chair Gary Gensler indicated that the agency’s numerous lawsuits against significant industry players are aimed at fostering a secure environment for investors.
“This sector will not endure for long if you cannot establish that investor confidence in the markets,” he remarked.
The SEC Chair has previously articulated his belief that nearly all cryptocurrencies, with the exception of Bitcoin, are unregistered crypto asset securities.
Earlier this year, the agency reluctantly approved spot Ethereum ETFs, implicitly acknowledging that they do not consider Ethereum a security.
Crypto investors are optimistic that the upcoming US presidential term will usher in more favorable policies for the crypto industry – the Biden administration has been a staunch supporter of the SEC’s rigorous anti-crypto approach.
Republican Presidential nominee Donald Trump has emerged as a strong advocate for crypto in 2024, endorsing Bitcoin and promoting a DeFi initiative developed by a group that includes his sons, known as World Liberty Financial.
Meanwhile, sitting VP and Democrat Presidential nominee Kamala Harris has not commented extensively on crypto, aside from her intention to foster innovation within the sector.
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