Andreessen Horowitz and the DeFi Education Fund have proposed to the SEC a safe harbor for decentralized app developers, shielding them from being classified as broker-dealers under U.S. securities laws. This includes developers of decentralized exchanges, self-custodial wallets, and NFT marketplaces. The proposal allows app developers to retain some operational control while pursuing a decentralization goal. It specifies that apps must be non-custodial, not execute transactions without user consent, and generally avoid providing investment recommendations. The SEC has historically pursued legal action against developers of decentralized apps, but this proposal aims to clarify regulations and promote innovation in the crypto sector. SEC Chair Paul Atkins has introduced 'Project Crypto', signaling a shift towards more favorable guidelines for crypto projects. The intent is to encourage domestic innovation in the crypto space without burdensome regulatory constraints that could stifle emerging technologies.

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