Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Andreessen Horowitz and the DeFi Education Fund have filed a petition with the U.S. Securities and Exchange Commission (SEC) suggesting that decentralized applications (dApps) that do not act as intermediaries should be exempt from broker registration obligations.
The venture capital firm Andreessen Horowitz (a16z) and the advocacy organization DeFi Education Fund (DEF) have introduced a “safe harbor” framework to the SEC. This framework proposes a distinct regulatory environment for DeFi services and NFT applications that serve as technical interfaces for engaging with blockchain networks and smart contracts, without holding user assets or offering investment guidance.
The petitioners emphasize that the legal ambiguity surrounding these applications in the U.S. hampers industry advancement and elevates risks for developers. The suggested “safe harbor” would be applicable only to dApps that satisfy four criteria:
Related Posts
- Non-custodial architecture. Users maintain complete control over their assets, and developers do not have access to private keys or funds.
- No discretion. The routing of transactions and their parameters are determined by objective algorithms, with the ultimate decision resting entirely with the user.
- No active solicitation or investment advice. The interface presents only impartial information without endorsing or emphasizing particular assets.
- Integration with decentralized protocols. Only autonomous, permissionless, non-custodial systems are utilized, preventing unilateral control over operations.
The proposal references the SEC vs. Coinbase case, in which the court determined that wallet functionality that does not allow access to funds and does not enable transactions without user consent does not qualify as broker activity. Representatives from a16z and DEF assert that establishing a “safe harbor” would offer regulatory clarity, enable the SEC to concentrate on genuinely risky projects, and maintain opportunities for the development of DeFi applications and NFT services in the U.S. without imposing excessive legal hurdles.
In March of this year, the U.S. House of Representatives voted to eliminate the requirement for all DeFi platforms to provide financial information about their users to the IRS.
Сообщение U.S. Proposes Exempting Non-Custodial DeFi Projects From Mandatory SEC Registration появились сначала на CoinsPaid Media.
