SEC Set to Weigh Safe Harbor Framework for US Crypto Token Launches

The US Securities and Exchange Commission (SEC) is set to meet on Friday to consider publishing proposed rules for certain crypto investment contracts, which could potentially open a tailored route for token launches.

The proposal may include a safe harbor framework for projects raising money while their networks are still under development. This approach would focus on projects that use investment contracts to finance network development and allow sponsors to raise funds while building a network.

Under the proposed framework, a sponsor could raise funds initially through an investment contract, and later, once the network no longer depends on the sponsor's managerial efforts, the token could move outside securities oversight. This would separate the initial fundraising transaction from the token's later regulatory status.

The SEC had already signaled work on a similar pathway in March, and Friday's meeting is expected to start the rulemaking process. If commissioners approve publication, the SEC would release the proposal for further review and public feedback before any final framework could take effect.