By Nikhilesh De. April 13, 2021. (Coindesk).
Securities and Exchange Commission (SEC) Commissioner Hester Peirce has an updated version of her proposal to let crypto startups sell tokens as initial coin offerings (ICOs) to fund their development efforts without running afoul of U.S. securities laws.
The Token Safe Harbor Proposal 2.0, published Tuesday, updates Peirce’s 2019 proposal which suggested a three-year grace period that would let blockchain projects actually develop their networks or tokens after raising funds. Under the proposal, a company could sell tokens before building the project but would be exempt from federal requirements that securities issuers register with the SEC.