The SEC has set sights on its next crypto enforcement target—”governance token.”
The agency’s Jan. 20 lawsuit accuses a trader of violating federal securities laws by manipulating the price of Mango Markets’ governance token, MNGO. Such tokens, which have become increasingly popular, give the holder the right to vote on changes to a blockchain organization that issued the token.
The case illustrates that governance tokens aren’t immune from the agency’s aggressive efforts to regulate crypto markets. It could also serve as a reference for other crypto projects on how to structure their governance models.
Source: SEC Mango Markets Crypto Suit Zeroes in on Governance Tokens
