A16z and DeFi Education Fund Push SEC for DeFi and NFT Safe Harbor

Andreessen Horowitz (a16z) and the DeFi Education Fund have jointly called on the U.S. Securities and Exchange Commission (SEC) to establish a regulatory “safe harbor” for certain decentralized finance (DeFi) and non-fungible token (NFT) applications, exempting them from the agency’s broker-dealer registration requirements. The advocacy and investment group argue that such a framework would bring much-needed clarity to the crypto space and protect innovation by preventing developers from being misclassified as brokers under the Exchange Act [1]. In a letter to SEC Commissioner Hester Peirce, the entities emphasized that only applications that do not generate the risks traditionally addressed by broker-dealer regulations should be eligible for the safe harbor [2]. The proposal follows a similar request made by a16z in March for a specific NFT safe harbor, including potential exemptions for airdrops and network token activities [3].

The move aligns with broader industry and policy calls for regulatory relief, including the Working Group on Digital Assets under the Trump administration, which had urged similar action for DeFi service providers. The request also follows a directive from SEC Chair Paul Atkins, who has instructed agency staff to update outdated rules affecting crypto and blockchain technologies [4]. Despite these developments, the proposal does not address past enforcement actions by the SEC, including lawsuits against major firms such as Coinbase, Kraken, and Cumberland DRW for operating as unregistered brokers [5].

Currently, the SEC allows for the designation of Special Purpose Broker-Dealers (SPBDs) for custodying digital asset securities. However, the agency has made clear that these designations are not mandatory and that standard broker-dealer requirements still apply to firms dealing in digital assets [6]. The regulatory landscape is expected to undergo further changes as the CLARITY Act, which aims to define the legal structure of crypto markets, moves through the U.S. Senate following its House passage in July 2025 [7].

A16z and the DeFi Education Fund argue that the proposed safe harbor would not undermine investor protection but instead enhance it by fostering a clear and balanced legal environment that encourages innovation. The initiative reflects a growing demand for regulatory certainty in the DeFi and NFT sectors, where many developers fear that inconsistent enforcement could stifle development and push projects overseas [8].

Sources:

[1] DeFi Education Fund and a16z urge SEC to create regulatory safe harbor for blockchain apps

https://www.theblock.co/post/366646/defi-education-fund-and-a16z-urge-sec-to-create-regulatory-safe-harbor-for-blockchain-apps

[2] A16z, DeFi Group Pitch U.S. SEC on Safe Harbor For DeFi Apps

https://www.xt.com/en/blog/post/a16z-defi-group-pitch-u-s-sec-on-safe-harbor-for-defi-apps

[3] a16z Crypto And Advocacy Group Call For NFT, DeFi App Safe Harbor at SEC

https://cointelegraph.com/news/andreessen-horowitz-defi-education-fund-sec-safe-harbor

[4] A16z, gruppo DeFi presentano alla SEC statunitense un

https://www.coindesk.com/it/policy/2025/08/12/a16z-defi-group-pitch-u-s-sec-on-safe-harbor-for-defi-apps

[5] A16z, DeFi Education Fund Want SEC Safe Harbor for DEX

https://decrypt.co/334915/a16z-defi-education-fund-want-sec-safe-harbor-for-dex-crypto-wallet-devs

[6] SEC Urged to Provide Safe Harbor for Blockchain Apps

https://blockchain.news/news/sec-safe-harbor-blockchain-apps

[7] A16z, DeFi Group Pitch U.S. SEC on Safe Harbor For DeFi Apps

https://www.xt.com/en/blog/community-news/2025-08-13T10:18:43.000Z

[8] DeFi Education Fund and a16z urge SEC to create ...

https://www.theblock.co/tag/bitcoin/407