SEC Commissioner Hester Peirce has made a proposal to steer crypto asset initiatives down a more organized path. At the annual SEC Speaks, she revealed a time-limited “safe harbor” to enable crypto initiatives to conduct activities under stipulated terms.
These requirements include explicit disclosure standards and strong investor protections within an interim registration-free period. Peirce stressed that there is an imminent need for equitable and uniform rules in particular as newly minted crypto networks are only just commencing their development process.
Peirce stated that most crypto assets in today’s markets do not meet the legal definition of a security. She clarified that items of value used for payment, computing power, or collectibles such as collectible coins and non-fungible tokens tend not to comprise economic rights within an enterprise.
In such instances, securities laws ought not to be applied, she contended. She also showed that current regulation measures have created uncertainty, and U.S. participants were, as a result, left out of most crypto innovations.
SEC’s peirce seeks clarity for airdrops, NFTs, and Stablecoins
In her remarks, Peirce advocated specific exemptions for crypto tools like airdrops, NFTs, and stablecoins when they lack traits of securities. She stated that such tools typically offer utility rather than profit-based investment returns.
For example, some NFTs use smart contracts to pay creators royalties without involving shared business risks. She stressed that this kind of design does not reflect the characteristics of traditional securities like stocks or bonds.
The commission acknowledged how uncertainty around security status has harmed honest developers and failed to stop bad actors. She mentioned the SEC’s Crypto Task Force, formed four months ago under Acting Chairman Uyeda and continued by Chairman Atkins, which has hosted four roundtables and received over one hundred public submissions.
This task force is working to provide new guidance, revoke outdated rules, and support Congress in drafting better crypto legislation. Peirce said the commission’s future work will include more detailed guidance for market participants.
