DeFi Education Fund Urges SEC to Establish Token Safe Harbor Framework

In a letter submitted to the SEC on April 18, DEF outlined five core principles for crafting a balanced approach that encourages innovation while maintaining essential oversight.

The initiative seeks to offer a structured, temporary exemption that allows projects to develop toward decentralization without being prematurely classified as securities—a status that often triggers complex regulatory burdens.

Call for Technology-Agnostic, Inclusive Regulation

One of DEF’s central recommendations is for the SEC to adopt a technology-agnostic stance. Rather than designing rules around specific blockchain architectures or consensus mechanisms, the framework should focus on the risk profile of activities. The letter warned that favoring certain technologies could stifle innovation and limit future flexibility.

DEF also emphasized the need for broad eligibility, stating that the safe harbor should extend beyond newly launched tokens. Already-distributed tokens that are still progressing toward decentralization goals should also be eligible, ensuring that early-stage projects aren’t excluded from future compliance opportunities simply due to timing.

READ MORE:

XRP Set for Explosive Breakout, Analyst Predicts $6 Target in Final Wave

Balanced Disclosure, Streamlined Compliance

On the issue of transparency, DEF proposed a set of disclosure requirements tailored to the realities of early-stage teams. These would include:

• Open-source code access
• Tokenomics and governance details
• Insider holdings and team activity
• Cybersecurity audits
• Development milestones and roadmaps

DEF also called for ongoing disclosures during the safe harbor period and proposed leveraging API integrations and blockchain automation to streamline compliance reporting. To reinforce the path toward decentralization, the group suggested lock-up periods for insiders, aligning incentives with long-term project goals.

A Proactive Path While Broader Legislation Lags

With comprehensive crypto legislation still pending in Congress, the DEF believes a token safe harbor could act as a bridge solution—providing regulatory clarity without halting innovation. The organization’s proposal aims to equip the SEC with a flexible, principles-based model that supports compliant growth in the DeFi ecosystem.

The post DeFi Education Fund Urges SEC to Establish Token Safe Harbor Framework appeared first on Coindoo.