SEC Proposes 3-Year Safe Harbor Period for Crypto Token Sales 🔒
The two-year official at the Securities and Exchange Commission – nicknamed “CryptoMom” by the blockchain community – has formally proposed a safe harbor for token projects. It would give them some breathing room to develop their networks and communities before having to worry about the regulatory regime.
Under Peirce’s proposal, unveiled during a speech at the International Blockchain Congress in Chicago Thursday, crypto startups would have a three-year grace period from their first token sale to achieve a level of decentralization sufficient to pass through the agency’s securities evaluations, including the Howey Test, the famous U.S. Supreme Court assessment.
To date, the SEC has brought enforcement actions against a number of companies that created and sold tokens, including Telegram and Kik, two major messaging platforms.
“The analysis of whether a token is offered or sold as a security is not static and does not strictly inhere to the digital asset,” according to notes detailing the proposal.
Car's 2 Satoshi's:
Interesting proposal from Commissioner Peirce, described this exact very thing in 2017 when the SEC made its debut to the Bitcoin & Crypto Community amongst all the price surges that year.
Do think with Jay Clayton currently in the head chairman position this will not get passed.
It is the right approach to crypto regulation, she nailed that part.