a16z, DeFi Fund Push SEC for Decentralized Exchange Safe Harbor
Andreessen Horowitz and the DeFi Education Fund are urging the U.S. Securities and Exchange Commission to create a safe harbor for qualifying decentralized exchanges.
The proposed safe harbor would cover decentralized platforms that let users trade directly without taking control of their funds, with qualifying systems presumed not to operate as exchanges unless regulators show otherwise.
Under the proposal, DEXs would need to meet four conditions: be non-custodial, automated, permissionless, and credibly neutral. Users would retain control of their funds and approve their own transactions.
The SEC is seeking public comment on the proposal, which has not been adopted yet.