The DeFi Education Fund has called on the SEC to implement a ‘safe harbor’ for token issuers, allowing them a limited registration exemption as they develop decentralized networks. This proposal, originally put forth by Commissioner Hester Peirce in 2021, aims to protect token purchasers by ensuring necessary disclosures while preserving anti-fraud provisions of securities laws. Amanda Tuminelli, the group’s executive director and chief legal officer, emphasized that this safe harbor will enable projects to operate securely during ongoing regulatory processes. The fund advocates for a technologically-agnostic approach in the establishment of rules and criteria for qualifying companies, suggesting they should demonstrate decentralization and transparency. Companies should be given a three to four year timeframe to meet the stipulated requirements. The appeal comes as the SEC prepares for new leadership with the recent confirmation of Paul Atkins as SEC Chairman, who aims to provide clearer regulations for the crypto industry.

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