The growth of the crypto space has primarily been attributed to its rapid rise in adoption, which has been credited to the market influence of prominent and top business names globally. From Michael Saylor’s offering to teach institutional investors how to understand Bitcoin to Jack Dorsey investing funds in Bitcoin projects tailored to improve the adoption of cryptocurrencies in Africa.
However, the U.S Securities and Exchange Commission (SEC) Commissioner- Hester Peirce, popularly called “crypto mum” by her colleagues in the house, is a well-known admirer of cryptocurrency trading. The SEC Commissioner has now posted her Safe Harbor 2.0 proposal, which she believes will help Blockchain projects flourish in the country.
Peirce believes it will take at least three years to classify tokens
The SEC Commissioner, earlier last year, had first proposed the set of rules whose intentions will be to guide Blockchain developers on how to understand the SEC’s regulations towards the cryptocurrency space. Before now, many Blockchain developers have consistently defied the rules of the SEC by falsely classifying their offerings as either security or non-security assets.
However, the SEC Commissioner has now posted the new proposition’s final draft, an update to the one posted last October. The SEC commissioner, in her proposal, believes that the confusion between a token and security will likely remain for a while, as most developers are unable to classify them at the beginning. However, she has now suggested that these developers should be given at least three years to determine whether their tokens can classify as security or not.
She believes that in that period, Blockchain developers can adequately test and trade their tokens in various forms and hence can now determine whether or not they are securities. Early last year, Jerry Brito of Coin Centre also echoed Peirce’s opinion, as he believes that three years will allow Blockchain networks to build and grow a function Blockchain system.
Peirce makes three new significant update to the Harbor 2.0
The SEC Commissioner has also made three new essential updates to the proposition, as she feels that investors in Blockchain project need to be adequately protected by the Blockchain developers, as failure to do that will mean that the SEC would be nosy around them.
She feels that these projects ought to have a transparent system, where everyone affiliated with the Blockchain system can publicly view transactions. Peirce also feels that, after these Blockchain projects have been given three years by the SEC to classify their tokens, they also need to properly intimate the SEC with an exit report, which will now intend to guide the SEC on how to classify their products.
She also feels that the exit report will allow the SEC to know if the project is now fully decentralized or still a security. She also feels that the developers should also provide adequate information to the regulatory body on the token pricing, allowing doubts created by token price manipulations. However, while these are Peirce’s suggestions, there is no confirmation that the SEC or its Executive body will implement them.