U.S. SEC commissioner, Hester Peirce, nicknamed “CryptoMom” by the blockchain community, has formally proposed a safe harbor for crypto projects. When adopted, this proposal would give the projects some 3-year breathing room to develop their networks and communities without running afoul of U.S. securities laws.

The grace period would enable them to achieve a level of decentralization sufficient to pass through the agency’s securities evaluations. Peirce’s proposal was unveiled during a speech at the International Blockchain Congress in Chicago held on Thursday.

According to the proposal, the analysis of whether a token is offered as a security is not static, and does not strictly inhere to the digital assets. This means that, some tokens may first appear to have the qualities of a security but later mature to the point where it no longer appears to be one.

Peirce has been pushing the idea of safe harbor in the past, but Thursday’s proposal is the first formal attempt she has made. Her proposal is aimed to create a strict set of requirements for crypto projects to raise funds through token sale. These would include, requiring personal disclosures, code disclosures, public notices and many other factors.

However, Peirce noted that, the proposal would not be available to any teams with members who have criminal history.

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