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What Is the “Safe Harbor” Proposal for Decentralized Crypto Projects?

A "safe harbor" proposal, such as the one suggested by SEC Commissioner Hester Peirce, aims to provide a temporary three-year grace period for decentralized projects to develop their network without the immediate threat of enforcement actions for selling unregistered securities. The idea is to allow innovation to flourish before imposing full securities regulation, provided the project meets certain disclosure and decentralization criteria by the end of the period.

It has not been adopted by the SEC.

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