Ooki DAO, the Decentralized Autonomous Organization, was sued by the United States Commodity Futures Trading Commission (CFTC) as the regulator accused its voting members of violating the Commodities and Stock Exchange Law.

According to the regulator, DAO members are responsible for their individual roles in relation to the development of a decentralized margin trading blockchain protocol and do not use KYC for participation in the platform as required by CEA regulations. With the CFTC lawsuit now filed, the DAO has opened a public discussion forum for its members to explore the best avenues to respond to the lawsuit.

The forum post laid out some options that will guide community members in choosing what the best approach should be.

According to the publication, through voting, Ooki DAO members can choose to approve the allocation of Ooki treasury funds to be spent to hire legal counsel to represent Ooki DAO members; approving the allocation of Ooki treasury funds for the DAO to continue to operate and any future contingency tracks; seeking support from the wider world of NFTs and DeFi, and launching a collection of NFTs to support the ongoing fight.

Ooki DAO is confident of gaining support from the broader ecosystem, as the precedents set by the lawsuit will affect the future approach of the CFTC and other regulators towards other major DAOs operating in the industry. Worse yet, the CFTC wanted each DAO member who contributes to the project through voting to answer individually for her involvement in the governance of the protocol.

Ooki DAO and broader observers in the Web3.0 ecosystem consider this a very brutal affront to the future survival of DAOs, which are just an innovative subset of the crypto ecosystem.

Stakeholders in the crypto ecosystem are now rising up in solidarity against US regulators’ approach to new blockchain technologies.

Like Ooki DAO, many speak out against the arrest of Alex Pertsev, the core developer of the Tornado Cash protocol. Additionally, sanctions on the cryptocurrency mixer by the US Department of the Treasury are being challenged by a coalition of industry stakeholders, including Coinbase.

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