The SEC's proposed token relief, introduced by Commissioner Hester Peirce, is anticipated to benefit certain crypto firms, especially those that conducted initial coin offerings (ICOs) between 2017 and 2018. Attorney Franco Jafré stated that projects demonstrating strong utility, such as tokens used for access to services or governance within decentralized finance, may qualify for relief. The proposal aims to provide clearer criteria to differentiate security tokens from genuine utility tokens. However, it is important to note that the SEC may not grant relief to firms involved in fraud or misleading practices during their ICOs. While the SEC has the authority to dismiss lawsuits against crypto firms for unregistered securities, it is unlikely to cease all litigation. Furthermore, there is a possibility that the SEC may focus solely on providing prospective relief instead of allowing retroactive measures, complicating relief for past ICOs.

Source 🔗