a16z & DEF propose SEC safe harbor for NFTs and DeFi

Andreessen Horowitz (a16z) and the DeFi Education Fund (DEF) have urged the US Securities and Exchange Commission (SEC) to create a regulatory safe harbor for specific NFT platforms and DeFi applications. In a letter to Commissioner Hester Peirce, they propose exempting projects that do not act as broker-dealers, exchanges or clearing agencies from registration under the Securities Exchange Act. The SEC safe harbor would reduce legal uncertainty, foster onshore blockchain innovation and avoid misclassification of modern software, while preserving the SEC’s enforcement authority over high-risk activities. The proposal revisits a16z’s earlier safe harbor suggestion, details criteria for airdrops and network tokens, and follows calls by a White House working group and SEC leadership to update outdated digital-asset rules. The SEC safe harbor could also shield platforms like Cumberland DRW, Coinbase and Kraken from civil suits over unregistered intermediary activities.