I am a big fan of “safe harbors”and wrote a bit a few years
ago about why I like them so much and why a crypto safe harbor
is such a needed and good idea.
There is a chicken and egg problem in financing crypto projects.
These projects need investment capital and community
involvement/buy-in to get to market and begin the process of
decentralization. But the SEC views crypto-tokens as securities
until the crypto-networks are sufficiently decentralized. And so
crypto projects get stuck in this never never land and have to
craft crazy frankenstein financings or risk getting sued by the SEC
(and/or both) in order to raise money and get their tokens in the
hands of community members.
I encourage the SEC to take Commissioner Pierce’s proposal
seriously and adopt a workable safe harbor for crypto projects here
in the US. We have seen the crypto capital markets and so much of
the innovation in the sector move offshore and a safe harbor would
be incredibly helpful in getting it back onshore (I couldn’t help
the nautical metaphor).
USV TEAM POSTS:
Nick Grossman — Feb 3, 2020
Friendly Wake-up Call
Bethany Crystal — Jan 30, 2020
What We Can Learn from Works in Progress
Albert Wenger — Jan 29, 2020
Dani Grant — Jan 29, 2020
Crypto Product Ideas