DAO

3 stories across channels

SEC Token Taxonomy Safe Harbors: $5M Startup Exemption, $75M Fundraising Pathway, and Lifecycle-Based Token Classification

Building on the SEC's March 22 taxonomy published in the Federal Register, new analysis reveals critical implementation details for DAO operators: a $5 million startup exemption lasting 4 years, a $75 million fundraising exemption with disclosure requirements, and a 'separation' concept where tokens transition from securities to non-securities once projects achieve full functionality and fulfill development promises. The Howey Test application now explicitly allows governance tokens to be classified as digital commodities or tools — rather than securities — if structured to eliminate forward-looking promises tied to team efforts.

The Frontier Desk · Monday, March 23, 2026

Arizona Files 20 Criminal Charges Against Kalshi — State vs. Federal Jurisdiction Battle Over Prediction Markets Intensifies

Arizona Attorney General Kris Mayes filed 20 criminal misdemeanor charges against CFTC-licensed prediction market Kalshi, alleging it operates an unlicensed wagering business. Charges cover bets on professional football, college basketball, elections, and public figure appearances. Concurrently, a Nevada judge issued a temporary order blocking Kalshi from offering contracts on sports, elections, and entertainment, with a hearing set for April 3.

The Frontier Desk · Monday, March 23, 2026

Flow Foundation Faces Securities Fraud Class Action — Token Holder Rights Litigation Precedent Forming

The Schall Law Firm announced March 22 that it is investigating Flow Foundation for alleged violations of securities laws, claiming the foundation issued false or misleading statements and failed to disclose material information to cryptocurrency investors. The firm is soliciting Flow token holders to participate in a class action. This comes alongside the Resolv exploit, creating a two-front liability exposure landscape for blockchain foundations.

The Frontier Desk · Monday, March 23, 2026