The Commodity Futures Trading Commission (CFTC) had on Sept. 27 filed a lawsuit claiming that Ooki DAO’s leverage and margin trading services were illegal.
Consequently, voting members of the DAO are considered liable to face sanctions for allegedly violating the provisions of the Commodities Exchange Act (CEA).
Ongoing discussions in the Ooki DAO forum have outlined three action plans to help the community raise funds to respond to the CFTC’s complaint.
To bootstrap internally, DAO members could approve the withdrawal of funds from the Ooki treasury. The funds will be used to hire legal counsels that will represent accused Ooki DAO members.
In seeking external funding, Ooki DAO could submit a Gitcoin grant request for members of the crypto community to support its legal defense.
According to the discussion, Ooki DAO’s plan to receive donations from the broader community is important as the outcome of the ongoing case would shape the future of other DAOs offering DeFi services.
“the outcome of the Ooki DAO CFTC case could serve as a precedent for other DAOs in the cryptocurrency space and have far-reaching implications for the entire cryptocurrency space as it pertains to the liability of DAO voting members. “
A third funding option would be to mint and sell NFTs in support of the Ooki DAO legal defense.
Community backs funding plans
So far, Ooki DAO members engaged in the discussion have unanimously agreed to the propositions.
Some have offered to contribute to the legal fees, while others agree that the broader crypto community should come together to defend the future of DeFi regulation.
There is still time to help shape the future of DeFi regulation. Let’s come together and decide the next course of action.
Delphi Digital General Counsel Gabriel Shapiro has advised the DAO to respond within 21 days to avoid automatically losing to the CFTC.