SEC Commissioner Hester Peirce has proposed a "Safe Harbor" law giving a 3 year grace period.
The proposal is still very limited in scope, is only a rough draft and appears to have little to no chance of becoming law as Peirce’s term as commissioner is scheduled to expire in June and no other commissioner has yet expressed support for the proposal.
As reported by CoinDesk, the proposal offers a potential solution to an important Catch-22 encountered by token-based networks before they are fully functional or decentralized. It would provide relief from federal securities law requirements often viewed as handicapping projects needing to get tokens into the hands of potential users to achieve full functionality or decentralization.
Commissioner Pierce has offered a welcome oasis for the crypto community in a federal bureaucracy that tends to be more reactive than proactive. She earned her the nickname “Crypto Mom” because she is willing to listen and offer solutions, not excuses to difficult issues the industry faces with her agency. But her enthusiasm may not be enough to move the proposal through the SEC.
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Photo Credit: Securities and Exchange Commission