SEC Commissioner speaks out against creating a "safe harbor" for ICOs
SEC Commissioner Caroline Crenshaw spoke out against calls for a safe harbor that would protect initial coin offerings (ICOs) projects from regulatory accountability.
SEC Commissioner Caroline Crenshaw spoke out against calls for a safe harbor that would protect ICOs projects from regulatory accountabilityhttps://t.co/Cgg63USRO4— FINTWIT (@fintwitnow) October 13, 2021
"Had a safe harbor been in place during the Initial Coin Offering or ICO boom of 2017 and 2018, I think the results would have been even worse for investors and the markets. ICOs and other digital asset offerings raised billions from investors, but most never delivered on their promises. Investors suffered the losses," Crenshaw said.
According to Crenshaw, instead of a "harbor," there needs to be a "bridge" between crypto industry participants and the SEC. Then projects can better clarify regulatory compliance with the Commission, she believes.
Earlier, in February 2020, SEC Commissioner Hester Peirce proposed a three-year safe harbor period for crypto token sales.
In April 2021 Peirce introduced a second version of the safe harbor for ICO projects.
"One area where the chair [Gary Gensler] and I don't see eye to eye is the lack of clarity around when something is or is not a security," @SECGov commissioner @HesterPeirce says.— CoinDesk (@CoinDesk) September 2, 2021
She unpacks the Token Safe Harbor Proposal 2.0, DeFi regulation and more: https://t.co/fwaQe28lgY pic.twitter.com/DdYxi3M3dx