SEC Considers Safe Harbor Framework for US Crypto Token Launches
The US Securities and Exchange Commission (SEC) is set to consider publishing proposed rules for certain crypto investment contracts, potentially opening a tailored route for token launches. The proposal could include a safe harbor for projects raising money while their networks remain under development.
This approach would focus on projects that use investment contracts to finance network development, allowing sponsors to raise funds while building a network. According to TD Cowen's Washington Research Group, the framework would recognize changes as the network develops, separating the initial fundraising transaction from the token's later regulatory status.
The SEC had already signaled work on a similar pathway in March, with Chair Paul Atkins discussing clearer treatment when projects offer crypto assets through investment contracts. The central issue remains how regulators determine when a developing network no longer depends on its sponsor and when the related asset may move beyond securities oversight.