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Andreessen Horowitz and the DeFi Education Fund have formally requested the SEC to establish a safe harbor for decentralized app (dapp) developers, shielding them from being classified as broker-dealers. The proposal aims to provide legal clarity while encouraging innovation in the DeFi space. This move aligns with the SEC’s ‘Project Crypto,’ which seeks to define regulatory boundaries for crypto projects.
- The proposal requires dapps to be non-custodial, avoid investment advice, and demonstrate a 'good faith to decentralize' to qualify for safe harbor.
- SEC's 'Project Crypto' aims to exempt certain crypto projects from oversight, aligning with the push for regulatory clarity in DeFi.
- The letter warns that overly strict enforcement could hinder innovation and expose investors to risks due to rushed decentralization.
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