- A16z and DEF propose SEC safe harbor for DeFi.
- Proposal addresses regulatory uncertainty in the US.
- Potential impacts on DeFi developers and investments.
A16z and the DeFi Education Fund proposed a regulatory safe harbor for non-custodial DeFi apps to the SEC, aiming to resolve regulatory ambiguity in the US as of August 2025.
The proposal could significantly impact DeFi innovation, reducing regulatory obstacles, potentially increasing investment in DeFi projects, and affecting market dynamics, particularly for Ethereum-based platforms.
A16z and the DeFi Education Fund recently proposed creating a regulatory safe harbor for eligible blockchain applications. They argue such measures would alleviate the regulatory uncertainty hampering DeFi innovation in the United States currently.
The proposal involves A16z, a US crypto venture capital firm, and the DeFi Education Fund (DEF), a lobbying group. They advocate these apps not be classified as brokers, addressing regulatory hurdles that developers face.
Immediate impacts include a potential shift in how DeFi developers approach creating new apps in the US. This safe harbor could boost developer confidence and innovation, potentially spurring growth in the blockchain space.
Potential financial outcomes include increased investment in DeFi projects if the regulatory environment becomes clearer. Market participants could see a reduction in perceived risks, creating a more conducive environment for blockchain app development.
While there are no immediate market changes, this proposal seeks to reduce the regulatory risk for DeFi developers. The SEC’s response may influence future technological development and investment strategies.
If successful, this safe harbor could dramatically shift regulatory frameworks for DeFi and blockchain apps. Citing past cases like Uniswap and OpenSea, the proposal emphasizes the need for regulatory clarity to foster safe innovation.
“We want to ensure developers can build without facing unreasonable regulatory barriers that do not align with the technology’s realities,” said Amanda Tuminelli, Executive Director, DeFi Education Fund.
