U.S. SEC Commissioner Hester Peirce: "Safe Harbor" proposal is intended to provide a safe way forward for legitimate projects

According to CoinDesk, Hester Peirce, a U.S. SEC commissioner and known as a "crypto mom", posted a coinDesk explanation of his "safe harbor" (that is, three years of security development time for legitimate crypto projects). Peirce explained two of the most worrying aspects of the proposal. The first concern is that the proposal will rekindle an ICO boom similar to 2017. Peirce said the purpose of the "safe harbor" is to provide a safe way forward for legitimate projects and make it more difficult for fraudulent projects to attract funds. "Safe Harbor" requires disclosure of specific information of the project and development team, retains the U.S. SEC's anti-fraud power over the sale of "Safe Harbor" tokens, and excludes bad actors. A second concern is the lack of a clear test of whether tokens constitute securities after three years. Peirce explained that in order to avoid being defined as securities after the end of the security period, the network must be sufficiently decentralized, which means that it will not be controlled and changed by any individual, group or entity under common control. Alternatively, the network can be functional, which means that token holders can use tokens in a manner consistent with the utility of the network.