A16z and DeFi Fund Push SEC for Safe Harbor on Decentralized Exchanges
Andreessen Horowitz and the DeFi Education Fund are pushing for a safe harbor for qualifying decentralized exchanges (DEXs) in the US. They argue that some peer-to-peer systems should not be treated like traditional exchanges, where intermediaries control funds and transactions. The proposal would cover DEXs that let users trade directly without taking control of their funds.
Qualifying systems would be presumed not to operate as exchanges unless regulators show otherwise. To qualify, DEXs must meet four conditions: they must be non-custodial, automated, permissionless, and credibly neutral. Users would retain control of their funds and approve their own transactions.
The proposal also sets separate requirements for DEX applications, including interfaces, pricing, and market data. Information must come from public, objective, and independently verifiable sources. Developers could maintain interfaces and make technical or security updates while using publicly disclosed neutral filters for assets.