{"id":552054,"date":"2026-08-05T02:45:17","date_gmt":"2026-08-05T01:45:17","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=552054"},"modified":"2026-08-04T15:40:39","modified_gmt":"2026-08-04T14:40:39","slug":"the-crypto-project-trying-to-replace-the-us-banking-system-just-pulled-its-10-trillion-token-filing","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/the-crypto-project-trying-to-replace-the-us-banking-system-just-pulled-its-10-trillion-token-filing\/","title":{"rendered":"The crypto project trying to replace the US banking system just pulled its 10 trillion token filing"},"content":{"rendered":"<p>American CryptoFed <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1881928\/000188192826000008\/Form10Withdrawal.htm\">withdrew<\/a> its second attempt to register the Locke governance token after the US Securities and Exchange Commission (SEC) staff found numerous material failures in its disclosure filing.<\/p>\n<p>The Wyoming organization submitted the withdrawal request on Aug. 3, preventing its <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1881928\/000188192826000006\/AmericanCryptoFedForm10.htm\">Form 10 registration statement<\/a> from becoming effective automatically on Aug. 15 while the staff\u2019s concerns remained unresolved.<\/p>\n<p>American CryptoFed operates as a Wyoming nonprofit unincorporated association and describes itself as the successor to American CryptoFed <a href=\"https:\/\/cryptoslate.com\/us-court-rules-daos-can-face-legal-liability-under-partnership-law\/\">DAO<\/a> LLC.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/wyoming-to-recognize-daos-as-legal-entities-under-newly-passed-law\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Wyoming to recognize DAOs as legal entities under newly passed law<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>The organization says its network is designed to address what it considers structural weaknesses in fractional reserve banking.<\/p>\n<p>It argues that <a href=\"https:\/\/cryptoslate.com\/the-us-debt-machine-is-getting-harder-to-stabilize-so-where-does-bitcoin-fit-in\/\">the US monetary system<\/a> depends on extensive supervision from agencies including <a href=\"https:\/\/cryptoslate.com\/if-the-fed-trusts-this-single-2-2-metric-bitcoin-could-break-65300-and-ignite-a-path-to-68000\/\">the Federal Reserve<\/a> and the Office of the Comptroller of the Currency, alongside deposit insurance provided by the Federal Deposit Insurance Corporation.<\/p>\n<p>American CryptoFed proposes replacing that structure with a token-based monetary system intended to operate without inflation, deflation, or transaction costs while supporting maximum employment.<\/p>\n<p>Its constitution assigns Locke a governance role within that system, while Ducat would function as the payment token.<\/p>\n<p>Locke is intended to operate on the <a href=\"https:\/\/cryptoslate.com\/blockchain\/ethereum\/\">Ethereum<\/a> blockchain with a maximum supply of 10 trillion tokens. No Locke tokens had been issued, granted, or sold when American CryptoFed withdrew the filing.<\/p>\n<p>On the other hand, Ducat would only have been launched if Locke's value reached and sustained a value equivalent to $0.10 USD per token. However, American CryptoFed stated that there was no guarantee that Locke tokens would have any value.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-552115\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-efb23eed-0c39-4c24-9739-30a60d26fa39.png\" alt=\"American CryptoFed withdraws Locke filing after SEC staff flags material failures\" width=\"720\" height=\"1201\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-efb23eed-0c39-4c24-9739-30a60d26fa39.png 971w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-efb23eed-0c39-4c24-9739-30a60d26fa39-180x300.png 180w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-efb23eed-0c39-4c24-9739-30a60d26fa39-614x1024.png 614w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-efb23eed-0c39-4c24-9739-30a60d26fa39-768x1281.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-efb23eed-0c39-4c24-9739-30a60d26fa39-921x1536.png 921w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/><\/p>\n<h2>Locke\u2019s next route depends on unfinished SEC rules<\/h2>\n<p>The withdrawal leaves American CryptoFed without a current route to register Locke and without a ruling on whether the token falls under federal securities law.<\/p>\n<p>American CryptoFed first sought to register Locke in 2021 through American CryptoFed DAO LLC, its now-dissolved predecessor. It attempted to withdraw the filing in July 2022 after the SEC opened administrative proceedings over alleged disclosure deficiencies.<\/p>\n<p>The Commission dismissed those proceedings in February 2026 after determining that the withdrawal had been effective. However, it expressed no view on whether Locke or Ducat qualified as securities.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/in-a-massive-u-turn-the-sec-declares-most-crypto-tokens-digital-commodities-after-years-of-legal-battles\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">SEC makes huge U-turn, declares crypto tokens are &#8216;digital commodities' after years of legal battles<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>American CryptoFed said it could submit another filing under a potential SEC crypto framework identified as <a href=\"https:\/\/www.reginfo.gov\/public\/do\/eAgendaViewRule?RIN=3235-AN38&pubId=202510\">RIN 3235-AN38<\/a>. The initiative was still classified as an economically significant proposed rule undergoing White House review as of Aug. 4, with no legal deadline for completion.<\/p>\n<p>The <a href=\"https:\/\/cryptoslate.com\/sec-tokenized-stocks-exemption-crypto-rails\/\">SEC\u2019s regulatory agenda<\/a> says staff is considering recommending rules governing crypto-asset offerings that could include exemptions and safe harbors. No proposal had taken effect, and the agenda does not establish that Locke would qualify for any eventual exemption.<\/p>\n<p>Indeed, SEC Chair <a href=\"https:\/\/cryptoslate.com\/people\/paul-atkins\/\">Paul Atkins<\/a>\u00a0had also described a possible future framework where the safe harbor would provide crypto innovators bespoke pathways to raise capital in the US, while providing appropriate investor protections<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/the-sec-just-gave-crypto-its-clearest-win-in-years-but-much-of-it-could-still-be-reversed\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">The SEC just gave crypto its clearest win in years, but much of it could still be reversed<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>However, the initiative remains a proposed rule rather than an operative exemption.<\/p>\n<p>Therefore, any renewed Locke effort would require American CryptoFed to submit a new registration statement addressing the staff\u2019s concerns or wait for a regulatory pathway that has been formally adopted and applies to its token model.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Its Aug. 3 move stopped this Form 10 before effectiveness, leaving the maximum authorized 10 trillion Locke tokens unissued.<\/p>\n","protected":false},"author":1264,"featured_media":552304,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77419,77968,79325,60208,11],"tags":[83380,72190,83381,83382],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with 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