a16z and DeFi Education Fund Propose Safe Harbor for DEXs to SEC
a16z and the DeFi Education Fund have submitted a proposal to the SEC seeking a safe harbor for decentralized exchange protocols, aiming to clarify their status under the Exchange Act. Additionally, a16z requested a registration framework for centralized crypto trading platforms based on existing rules for alternative trading systems.
Proposal for Safe Harbor
On September 14, a16z and the DeFi Education Fund presented a joint proposal to SEC Commissioner Hester Peirce. This proposal aims to establish a safe harbor that would create a rebuttable presumption that decentralized exchange (DEX) protocols and their front-ends do not qualify as exchanges under the Exchange Act.
Request for Centralized Exchange Framework
On the same day, a16z also submitted a separate letter to the SEC advocating for a structured registration regime for centralized cryptocurrency trading platforms. This proposed framework is modeled after the alternative trading system rules established in 1998.
These initiatives come just days before the SEC introduced its Innovation Exemption for tokenized stock venues, highlighting the ongoing dialogue around regulatory clarity in the cryptocurrency sector.