Crypto Project Withdraws 10 Trillion Token Filing Amid SEC Concerns

The crypto project American CryptoFed has withdrawn its second attempt to register the Locke governance token with the US Securities and Exchange Commission (SEC) after staff concerns were raised about material failures in its disclosure filing.

The organization, which operates as a Wyoming nonprofit unincorporated association, had proposed replacing the US banking system with a token-based monetary system. Its constitution assigns Locke a governance role within that system, while Ducat would function as the payment token.

Locke is intended to operate on the Ethereum blockchain with a maximum supply of 10 trillion tokens, but no Locke tokens had been issued, granted, or sold when American CryptoFed withdrew its filing. The withdrawal leaves the project without a current route to register Locke and without a ruling on whether the token falls under federal securities law.

American CryptoFed said it could submit another filing under a potential SEC crypto framework identified as RIN 3235-AN38, but any renewed effort would require addressing staff concerns or waiting for a regulatory pathway that has been formally adopted and applies to its token model.