The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

SEC Crypto Safe Harbor Could Be ‘Most Groundbreaking Development’ for US Market, Says Binance Exec

by Daily Hodl Staff
February 7, 2020
in Regulators

US Securities and Exchange Commissioner Hester Peirce is presenting a new proposal on how to regulate cryptocurrencies.

Under her plan, US regulators would dramatically shift how they are attempting to regulate blockchain-based digital assets. They would no longer classify them as financial securities – at least not initially.

Currently, only a handful of cryptocurrencies are exempt from US securities laws, including Bitcoin (BTC) and Ether (ETH). While there have been a few exceptions to the rule, the SEC maintains that the risk is quite high of an initial coin offering (ICO) being classified as a security. 

Under Peirce’s safe harbor proposal, however, companies that issue digital tokens will get some breathing room so they can establish their networks and communities before dealing with regulatory requirements.

Speaking on Thursday at the International Blockchain Congress in Chicago, Peirce explained how crypto-related firms would be granted a three-year grace period from the launch of their first token sale to reach a certain level of decentralization. If achieved, such tokens would no longer meet the SEC criteria for being classified as securities under the federal securities laws.

Several leaders in the crypto space are applauding the Commissioner’s approach to regulating the new industry with a light touch that doesn’t drive entrepreneurs out of the country in search of governments with a more flexible framework for tech innovation.

Says Catherine Coley, CEO of Binance.US,

“If adopted, the proposed safe harbor could be the most groundbreaking development for the US cryptocurrency market to date…

By putting development first and giving projects runway to build robust networks, the proposed safe harbor puts an important stake in the ground towards supporting American access and acceptance of digital asset markets. In the long run, it will help bring more Americans into digital asset trading and foster greater network participation.” 

The proposal underscores how a blockchain project arrives at decentralization – it needs time, developers, users, use cases and steady adoption.

According to the proposal,

“The analysis of whether a token is offered or sold as a security is not static and does not strictly inhere to the digital asset.”

So while some tokens might have the characteristics of a security when first introduced, they’re fluid and their purpose can evolve as their network expands.

Steve Kokinos, CEO of blockchain protocol Algorand, calls the formal proposal an important step.

“The blockchain industry and regulators need to continue a healthy dialogue for the US to truly become the global and responsible leader in blockchain innovation.”

Adds Katie Biber, general counsel of institutional crypto custodian Anchorage,

“We urge the Commission to move promptly to adopt it and to consider other innovative ways to increase investor choice in the digital asset space.”

If Peirce’s proposal is accepted, then it could establish strict rules for crypto and blockchain projects when raising capital via token sales, including issuing requirements for personal disclosures, source code disclosures, appropriate public announcements and a public list revealing the identities of the ICO team members.

The idea is to protect consumers while also creating an environment that allows innovation to flourish.

The proposal clarifies the idea of “network maturity” or the point at which a project’s digital tokens are no longer being controlled by a single entity.

“The definition of Network Maturity [for a cryptocurrency] is intended to provide clarity as to when a token transaction should no longer be considered a security transaction but, as always, the analysis will require an evaluation of the particular facts and circumstances.”

Peirce acknowledges that the success of the safe harbor proposal depends on token issuers acting in good faith and that it does not undermine any necessary enforcement action against fraudulent ICOs or other illegal activities.

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Sergey Nivens

Submit a Press Release

Industry Announcements

  • Bunzz Raises $4.5 Million Seed Round To Expand Its Smart Contract Hub for DApp Development
    January 24, 2023
  • Dogecoin and Shiba Inu Better Watch Out – Floki Just Had Three Big Things Happen for It
    January 24, 2023
  • Crypto Marketing – What Initiatives Will Bring More Value and Users in 2023
    January 23, 2023
  • Make Crypto Payments on BChat Web 3.0 Messenger – BChat Integrates Beldex Wallet
    January 22, 2023
  • KEY3.id Supports Multi-Chain Transaction, Partnership With KuCoin Wallet, CoinHub Wallet and Wallet3 To Launch 2023 Lucky Transaction Campaign With Over 30,000 Participants on Social
    January 20, 2023
  • Deposit EUR/GBP at Zero Percent Fees With Newly Launched SEPA/FPS Channels on Bitget
    January 19, 2023
  • Coinbase Lists Kava, Advancing Ethereum–Cosmos Interoperability
    January 18, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$23,059.18
$23,059.18
0.84%
Ethereum
$1,581.24
$1,581.24
0.71%
Cardano
$0.384691
$0.384691
1.89%
XRP
$0.411247
$0.411247
1.28%
Dogecoin
$0.089052
$0.089052
3.94%

Spotlight

  • Analyst Benjamin Cowen Issues Crypto Warning, Says Bitcoin (BTC) Rally Likely Unsustainable – Here’s Why
    January 24, 2023
  • Leading Crypto Analyst Dives Into Bitcoin and Ethereum, Says Two Altcoins Are ‘Going Through the Roof’
    January 26, 2023
  • Top Analyst Details Massive Bitcoin Target, Says Major Paradigm Shift Potentially Underway
    January 22, 2023
  • Majority of Dogecoin (DOGE) Holders Now in Profit After Shiba Inu Rival Rallies 32% This Month: IntoTheBlock
    January 25, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl