The work of creating crypto- and investor-friendly legal frameworks in the United States continues. Thankfully for the web3 community, they have friends in high places.

It’s been almost three years since Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC) released her updated Token Safe Harbor Proposal 2.0 — but she isn’t giving up.

While the proposal hasn’t made headway in its forms that are prior the commissioner isn’t stopping. “I believe we might seriously require a version that is 3.0 the government wants to keep crypto innovation alive in the U.S, she said during an exclusive fireside chat with For Millionaires at Georgetown University’s McDonough School of Business.

“There’s room for something to address the concerns that are legitimate crypto-skeptics have actually, while handling the genuine issues of innovators,” Peirce added.

The Proposal’s versions that are previous to “answer the question a lot of people had,” surrounding the issuance of tokens, Peirce said. She explained that she built an earlier iteration of the concept after the initial coin offering (ICO) boom of 2017, when a lot of startups launched their own tokens, and there was “not a lot of disclosure around them.”

The safe harbor plan aimed to provide initial development teams with a three-year grace period during which they could participate in and create a decentralized network, and be exempt from “registration provisions of the federal securities laws so long as certain conditions are met,” according to a GitHub document.

Peirce’s proposal aimed to require people to make disclosures for the initial period when they were selling tokens. From there, the idea was that “if the blockchain was really decentralized, so that no one had any more information [i.e. insider information] than anyone else, the disclosures wouldn’t be necessary anymore because all the information would be out there and available to anyone.”

While the commissioner said she hasn’t laid out the details for 3.0 yet, she is open to people ideas that are tossing method. “I welcome a few ideas not just regarding the Token secure Harbor, but much more usually — in the event that SEC had been to awaken tomorrow and state, ‘We want to just take an even more approach that is productive’ what would ideas look like [and] where would we need to spend our time?”

It’s unreasonable to expect a new project that is token have a similar types of disclosures and appropriate comprehension as a business that is existed for fifteen years and it is performing an IPO, Peirce believes. “There’s simply a mismatch that is real the expectations that some people would like to put on these token projects and the reality,” Peirce said. “The result is, we end up in the worst of both worlds: We don’t get any disclosure and we get companies moving outside the U.S.”

Crypto’s developer ecosystem is continuing to expand globally, with 74% of developers outside of North America, according to Maria Shen, general partner at Electric Capital. The share of U.S. blockchain active developers declined to 24% last year, down from 40% in 2017, and fell 5% from the previous year, according to the firm’s 2023 developer


“I think the message that has been sent is that it’s really complicated to do business in the U.S.,” Peirce said as a result. “So lots of people searching somewhere else or trying to simply do something differently, and I also think that’s problematic.”

If There aren’t clear rules, it makes it harder for both startups and regulators to sort through what’s good versus bad “by the written book,” she added.

“People spend a lot of time spinning their wheels thinking about regulation, which they could spend thinking about what things that are real be performed with all the technology,” Peirce said. SubscribeShe joked it is “very optimistic” to assume there’s a “new time dawning in the SEC” following the company accepted 11 area bitcoin ETF issuers month that is last. But on the side that is flip she included, “We must be all set whenever that day takes place.” Apple PodcastsThis tale had been prompted by an episode of For Millionaires’s podcast Chain Reaction. Spotify to Chain effect on


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