DeFi Education Fund Proposes ‘Safe Harbor’ for Token Issuers to SEC
The DeFi Education Fund is urging the US Securities and Exchange Commission (SEC) to implement a "safe harbor" for token issuers, allowing limited registration exemptions while developing decentralized networks. This proposal, initially suggested by Commissioner Hester Peirce, aims to:
- Protect token purchasers through tailored disclosures
- Preserve antifraud provisions of securities laws
- Encourage participation in relevant networks
Amanda Tuminelli, executive director of the DeFi Education Fund, emphasized that this safe harbor would enable projects to operate safely as regulatory frameworks evolve. She stated that Congress should handle broader market structure issues.
Tuminelli recommended that regulators remain "technologically-agnostic" when establishing rules for the safe harbor. Criteria for qualifying companies should include:
- Decentralization intentions
- Meeting an "exit test" requiring maximum transparency and permissionless networks
Companies would have three to four years to fulfill exit test requirements. The letter comes after the Senate's confirmation of Paul Atkins as SEC Chairman, who aims to establish clear regulations for the crypto sector.