How Does a SAFT Protect the Issuer from Immediate Securities Law Violations?

A SAFT protects the issuer from immediate securities law violations by treating the initial contract (the SAFT itself) as a security and selling it only to accredited investors under a valid regulatory exemption like Regulation D. This ensures the capital-raising event is compliant. By postponing the delivery of the actual tokens until the network is functional, the issuer attempts to ensure that the delivered token is no longer a security, thereby avoiding the violation of selling an unregistered, non-exempt security to the public.