Commissioner SEC Caroline Crenshaw spoke out against calls to create a ‘Safe Harbour’ that would shield ICO projects from regulator accountability.
«If there had been a safe harbour during the ICO boom of 2017 and 2018, I think the outcomes for investors and markets would have been even worse. ICOs and other digital-asset offerings attracted billions, but most did not deliver on their promises. Investors suffered losses».
In Crenshaw’s view, instead of a harbour a ‘bridge’ is needed between crypto-industry participants and the SEC. Then projects could better clarify their compliance with regulatory requirements in collaboration with the Commission, she says.
«As with all new developments in markets, digital assets, decentralized networks and user interactions raise new questions. If a company or its adviser is in such a position, we are prepared to work with them, but the best help comes when they take the initiative»
In February 2020, SEC Commissioner Hester Peirce proposed three-year regulatory holidays for startups conducting token sales.
In April 2021, she presented the second version of the ‘Safe Harbour’ for ICO projects.
Earlier, Peirce, known for her crypto-friendly stance, stated that sales of NFT may violate securities laws. She also advised DeFi projects to consult with the SEC on this matter.
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