Andreessen Horowitz and the DeFi Education Fund have formally requested the SEC to establish a safe harbor for developers of decentralized applications (dapps), including those at centralized firms. This proposal aims to protect these developers from potential legal issues related to securities laws. If approved, it would exempt creators of dapps like decentralized exchanges and self-custodial wallets from being classified as broker-dealers, even if their apps handle tokenized securities, provided they meet specific criteria. These criteria include being non-custodial, requiring user consent for transaction execution, avoiding investment advice, and demonstrating a commitment to decentralization. The letter emphasizes that current definitions may inadvertently capture some dapp developers, which could stifle innovation. The SEC has previously taken action against centralized developers, but the new proposal seeks to clarify regulations and foster growth in the crypto sector. The initiative aligns with recent efforts by the White House and SEC to create clearer guidelines for digital assets, promoting a more supportive environment for crypto innovation. Read more AI-generated news on: https://app.chaingpt.org/news

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