While new leadership is preparing for taking over the US Securities and Exchange Commission, a crypto interest group that is now the time to breathe new life into a 2020 proposal has learned exclusively.
The Defi Education Fund asks the SEC to set up a “safe haven” for token expenditure, so that they can be a limited registration exemption while they develop decentralized networks. It is an idea that Commissioner Hester Peirce drove for the first time five years ago.
“The Safe Harbor protects the buyers of Token by requiring disclosures on their needs, preserving the application of the anti -fraud provisions of the securities laws and giving them the opportunity to participate in interesting networks,” said Peirce in a speech of 2020.
In a letter sent to the SEC Crypto Task Force on Friday – a group that was established earlier this year to tackle how securities laws apply to digital assets – said Defi Education Fund Executive Director and Chief Legal Officer Amanda Tuminelli that the group supports the concept of Peirce and they have some ideas to fill it out.
A safe haven, Tuminelli said, will enable projects to work safely “while the long -term legislation and regulations processes take place.” The congress, Tuminelli emphasizes, must be responsible for tackling “broader market structure and jurisdictional issues.”
When determining rules and policy for the safe haven, regulators must be ‘technological-aggied’, Tuminelli advised.
“Given the crucial role that the SEC plays in the US economy and the fact that securities markets are constantly evolving for continuous innovation, the committee must be wary of obliging specific, prescribed requirements or formats that are unsuitable for new or emerging technologies,” the letter was.
In terms of which companies are eligible for the Safe Harbor, the Defi Education Fund proposes to ensure that the projects are or are planning to be decentralized and are able to meet an “exit test”.
