TL;DR
- Proposal Rejected: Mango DAO voted against paying the U.S. SEC $700,000 to settle charges related to unregistered MNGO token sales.
- Voting Dynamics: Despite initial support, a significant number of votes were withdrawn just before the deadline, causing the proposal to fail by 52.2 million votes.
- Regulatory Context: This decision reflects ongoing regulatory scrutiny in the crypto space, with Mango DAO’s stance potentially influencing future compliance strategies for other crypto firms.
The Mango DAO has turned down the proposal to pay the U.S. SEC $700,000 as part of Mango Market’s settlement for their unregistered MNGO token sales. This decision coincides with Crypto Com’s recent lawsuit against the SEC, following a Wells Notice issued to the crypto exchange.
Proposal Details and Voting Outcome
The proposal aimed to authorize the release of escrowed funds totaling $669,684 to the SEC, fulfilling the settlement terms agreed upon by Mango Labs and the Blockworks Foundation. However, the proposal failed to pass, falling short by 52.2 million votes.
Despite initially having over 100 million votes in favor, a substantial number of votes were withdrawn just hours before the voting period closed, leaving only 27,774,65 yes votes.
Context and Implications
This decision comes amid heightened regulatory scrutiny in the crypto space. The SEC had charged Mango Markets with securities violations related to the unregistered sale of MNGO tokens. The rejection of the settlement proposal raises questions about the DAO’s future strategy and its stance on regulatory compliance.
Broader Regulatory Landscape
The rejection of the settlement proposal by Mango DAO is part of a broader trend of increasing enforcement actions by US regulators against crypto firms. According to a CoinGecko report, crypto companies have reached $32 billion in settlements with US regulators.
Notable settlements include the $12.70 billion agreement by FTX and Alameda with the US Commodity Futures Trading Commission (CFTC) and the $4.7 billion fine paid by the bankrupt crypto lender Celsius to the SEC.
Future Outlook
The decision by Mango DAO could have far-reaching implications for other crypto firms facing regulatory challenges. It also coincides with Crypto Com’s recent lawsuit against the SEC, following a Wells Notice alleging securities law violations.
The outcome of these regulatory battles will likely shape the future landscape of the crypto industry, influencing how firms navigate compliance and enforcement actions.
The rejection of the $700,000 settlement proposal by Mango DAO highlights the ongoing tension between the crypto industry and regulatory bodies. As the industry continues to evolve, the actions and decisions of DAOs and other crypto entities will play a crucial role in shaping its future.
