SEC and CFTC Signal Push for Broader Authority Over Digital Asset Markets

[...]the CFTC's actions against bZeroX LLC (bZeroX) and two of its founders on September 22, 2022 suggest that virtually anyone who participates in governance decisions for a decentralized digital asset protocol may be considered liable for any unlawful features of the protocol.2 We discuss each of these matters in more detail below. According to the SEC's complaint, Balina agreed to promote Sparkster's ICO in return for the opportunity to purchase a large number of tokens, which significantly exceeded the maximum allotment offered to other offering participants, and to receive additional "bonus" tokens for no additional consideration. [...]the SEC alleged that "those transactions took place in the United States." [...]the CFTC has moved to authorize alternative service against the DAO via postings in "an online forum for holders of Ooki Tokens to discuss and vote on Ooki DAO governance issues.