Does the CFTC enforce Ooki DAO members?

CFTC Commissioner Summer K. Mersinger issued a forceful dissent from the settled order, focusing on the CFTC’s enforcement against the Ooki DAO members. The legal treatment of DAOs whose members vote through governance tokens has been the subject of considerable debate among those in the Web3 space.

Is Ooki Dao a FCM?

The CFTC alleged Ooki DAO was offering leveraged and margin trading products without registering as a Futures Commission Merchant (FCM), a legal requirement in the U.S. The complaint is a dagger into the belief that decentralization is a defense against regulation.

Does Ooki DAO operate bzerox?

According to the complaint, the Ooki DAO operates — and bZeroX operated — the bZx Protocol, a decentralized blockchain-based protocol that allegedly offered, entered into, accepted and executed digital asset transactions that constituted “retail commodity transactions” in violation of the Commodity Exchange Act (CEA) and Commission regulations.

Is the Ooki Dao an unincorporated association?

The order finds that the Ooki DAO is an unincorporated association pursuant to federal law because it is (1) a voluntary group of persons, (2) without a charter, (3) formed by mutual consent, (4) for the purpose of promoting a common objective.