The governance token of decentralized finance (DeFi) protocol BarnBridge saw its price more than double over the last two days after the project indicated it would comply with unspecified demands made by the U.S. Securities and Exchange Commission (SEC).
BOND, the protocol’s governance token used by holders to vote on project decisions, was trading around $4.20 on Saturday afternoon. This continues a rally that started Thursday, bringing the token to its highest value since May.
The sudden price surge began shortly after BarnBridge insiders authorized founders Tyler Ward and Troy Murray to take all necessary actions to satisfy an SEC order. This includes paying any fines levied by the regulatory agency.
The decision followed a two-day poll by BarnBridge on how to respond to the SEC order. The only vote cast in the poll came from a wallet linked to the project team, which controls the single largest voting stake in BarnBridge.
Some in the crypto community have questioned whether a binding decision for a decentralized protocol should be made by a single voter.
“Is it in the spirit of crypto that a community-binding proposal takes effect because of a 1 of 1 vote?, Is this the decentralization we want to see?” asked Nelson Rosario, a crypto-focused attorney
The SEC investigation into potential securities violations has been ongoing since at least July. Since then, BarnBridge has halted financing for development, hired legal counsel, and locked down access to its Discord community server.
The exact details of the SEC order and proposed resolution remain unclear. BarnBridge has yet to release an official statement on the matter.