Andreessen Horowitz DeFi Fund Seek SEC Safe Harbor for NFTs DeFi Apps

Andreessen Horowitz (a16z) and the DeFi Education Fund have requested the U.S. Securities and Exchange Commission (SEC) to establish a “safe harbor” for non-fungible token (NFT) and decentralized finance (DeFi) applications, exempting them from the agency’s broker-dealer registration requirements [1]. In a letter addressed to SEC Commissioner Hester Peirce, the groups highlighted the need for regulatory clarity and argued that developers should not be subject to enforcement actions when their applications do not carry the same risks as traditional broker-dealer activities [2]. The call follows broader industry and policy efforts, including the Trump-era Working Group on Digital Assets, and aligns with recent SEC Chair Paul Atkins’s directive to modernize outdated crypto-related regulations [1].

A safe harbor, in the context of SEC enforcement, would provide legal protection to companies offering crypto-related products and services by shielding them from immediate enforcement actions [1]. The groups emphasized that such a policy would allow developers to operate within U.S. markets without facing the misapplication of legal frameworks not designed for modern blockchain infrastructure [1]. This is a continuation of a16z’s advocacy efforts, which began in March 2025 with a letter proposing a safe harbor for NFTs and suggesting similar protections for airdrops and network tokens [2].

The potential impact of the safe harbor proposal could extend to the thousands of broker-dealers registered with the SEC. As of 2024, the agency reported approximately 3,340 broker-dealers managing $6.4 trillion in assets [1]. While the SEC introduced the Special Purpose Broker-Dealer (SPBD) category in 2020 for digital asset securities custody, it clarified that this classification is not mandatory [1]. Developers of decentralized applications, including those operating on platforms like Uniswap and OpenSea, are among those who could be affected by the proposed change [3].

The initiative comes at a time of legislative movement at the federal level. In July, the House of Representatives passed the CLARITY Act, a key bill aimed at redefining the roles of the SEC and the Commodity Futures Trading Commission (CFTC) in regulating crypto markets [1]. The bill is pending in the Senate and could reshape how digital assets are categorized and governed. Meanwhile, the SEC has shown some flexibility in its approach, with recent reversals on certain enforcement actions indicating a shift in regulatory strategy [4].

While a16z and the DeFi Education Fund argue that a well-designed safe harbor would prevent regulatory overreach while maintaining investor protections, critics—including some SEC commissioners—have expressed concerns that such measures could exacerbate existing issues, particularly in the context of initial coin offerings (ICOs) [1]. The debate reflects a broader divide between the regulatory framework and the evolving nature of blockchain and decentralized applications.

The call for a safe harbor underscores the industry’s demand for clearer guidelines that reflect the decentralized and automated characteristics of blockchain technology. As the SEC and CFTC continue to define their roles in the crypto ecosystem, the outcome of this proposal could significantly influence the industry’s development in the United States [5].

Source:

[1] title1.............................(https://cointelegraph.com/news/andreessen-horowitz-defi-education-fund-sec-safe-harbor)

[2] title2.............................(https://www.theblock.co/post/366646/defi-education-fund-and-a16z-urge-sec-to-create-regulatory-safe-harbor-for-blockchain-apps)

[3] title3.............................(https://decrypt.co/334915/a16z-defi-education-fund-want-sec-safe-harbor-for-dex-crypto-wallet-devs)

[4] title4.............................(https://blockchain.news/news/sec-safe-harbor-blockchain-apps)

[5] title5.............................(https://www.coindesk.com/it/policy/2025/08/12/a16z-defi-group-pitch-u-s-sec-on-safe-harbor-for-defi-apps)