Andreessen Horowitz (A16Z) and the Defi Education Fund have urged the US Securities and Exchange Commission (SEC) to set up a “Safe Harbor” program for Decentralized Application (Dapp) trading platforms.
In a letter of 12 August to SEC commissioner Hester Peirce, the groups wrote that a clear framework would ensure that builders of non-right interfaces would be treated as broker dealers under existing securities rules.
According to them:
“A safe haven would offer much needed regulatory clarity to developers of user interfaces and ensure that they can build in the United States without fear of the wrong application of laws that are inappropriate for modern software infrastructure.”
Defi Education Fund stated that the proposal focuses on apps that function as a technical infrastructure. With these apps, people can initiate their blockchain transactions and communicate with smart contracts.
According to these guidelines, the Platform would enable users to carry out transactions independently, without taking custody of assets, practicing discretion on trade performance or to request investments.
Although Dapps could still use tools such as routers or solving to improve efficiency, the user would retain the final approval for each transaction.
In addition, qualifying DAPPs must work on blockchain networks or smart contracts that are non-requirements, permissionless and free of control-based trust dependence.
Both entities argued that these criteria would set expectations for developers and reduce accidental violations. They also emphasized that decentralization unfolds in phases, because projects often start with stricter safety controls and then handle authority as they grow mature.
If the regulators forcease rigid rules too early, teams can hurry, introduce security slacunes or stop progress completely. Given this, they insisted on the regulator to give concessions to platforms that actively go to decentralization.
They noted that these coverage would encourage teams to adopt open, non-rights and prevent them from being punished during the transition when they still have some operational responsibilities.
Recently, an American jury sentenced co-founder of Tornado Cash Roman Storm for running a company without a permit. At the same time, the Turkish authorities have held an Ethereum developer who was accused of helping the abuse of the network.
These controversial cases have reinforced the concerns in the crypto community about the growing legal pressure with which decentralized protocol developers are confronted.