The SEC's proposed token relief measures will not provide a blanket pass for all crypto projects, according to attorney Franco Jafré. The proposal, introduced by SEC Commissioner Hester Peirce, may particularly benefit crypto firms that held initial coin offerings (ICOs) during 2017-2018 and those with strong utility use cases for their tokens. Jafré emphasizes that the SEC could potentially clarify the distinction between security tokens and genuine utility tokens. Such tokens, which provide access to services rather than serving as investment instruments, include decentralized finance projects and crypto infrastructure. While the SEC has the authority to dismiss lawsuits against crypto firms for unregistered securities offerings, it would likely exclude companies engaged in fraud. Jafré suggests that any new guidelines or redefinitions from the SEC could facilitate the dropping of some ongoing litigations. However, there's also a possibility that the SEC may only grant prospective relief, without retroactive measures.

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