While the new leadership is preparing to take care of the Securities and Exchange American Commission, a cryptographic advocacy group considers that it is time to relaunch a proposal in 2021, Blockworks learned exclusively.
The DEFI Education Fund asks the SEC to establish a “security port” for token issuers, allowing them a limited registration exemption while they develop decentralized networks. It is an idea that Commissioner Hester Peirce floated for the first time five years ago.
“The refuge protects tokens buyers by demanding disclosure adapted to their needs, preserving the application of the antifraude provisions of securities laws and giving them the capacity to participate in networks of interest,” said Peirce in a 2020 discourse.
In a letter sent on Friday to the working group on the dry crypto – a group created earlier this year to determine how the securities laws apply to digital assets – the executive director of the Education Fund Defi and the legal director Amanda Tuminelli declared that the group supported the concept of Peirce, and they have some ideas to expand them.
A security port, said Tuminelli, will allow projects to operate safely “while long -term legislation and regulatory processes take place”. The congress, underlined Tuminelli, should be responsible for the fight against the “broader market structure and the problems of jurisdiction”.
When establishing rules and policies for wearing Safe, regulators should be “technologically agnostic,” said Tuminelli.
“Given the vital role that the SEC plays in the American economy and the fact that the securities markets are constantly evolving due to the current innovation, the Commission must be wary of the obligation of specific prescriptive requirements or formats not adapted to new or emerging technologies,” said the letter.
With regard to companies eligible for Safe Harbor, the DEFI education fund suggests ensuring that projects are or intend to be decentralized and are able to respond to an “outing test”.
The output test criteria include maintaining “maximum transparency”, a network without authorization and decentralization. The regulators should allow participating companies of three to four years to meet the exit test requirements, added Tuminelli.
The letter comes shortly after the Senate confirmed Paul Atkins, President Trump’s candidate for the president of the SEC, during a vote of 52-44. Atkins, who was previously commissioner under President Bush, has not yet taken an oath.
At his hearing on the appointment, Atkins said he hoped to provide “clear road rules” to the cryptography industry.
Updated on April 18, 2025 at 12:25 p.m.: The updated title and the clarified proposal were relaunched in 2021, not in 2020.
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