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

Andreessen Horowitz (a16z) and the DeFi Education Fund are urging the SEC to establish a safe harbor program, providing NFT and DeFi apps with breathing room from strict broker-dealer registration rules.

• The proposal follows calls from U.S. leadership to modernize crypto regulations and avoid misapplying outdated categories to modern software.
• A safe harbor would allow certain apps to operate without triggering broker-dealer enforcement, while still letting the SEC oversee high-risk activities.
• a16z has previously proposed safe harbors for NFTs, airdrops, and network tokens.
• Any change could impact thousands of registered broker-dealers and significantly alter U.S. crypto regulation.
  

Andreessen Horowitz (a16z) and the advocacy group DeFi Education Fund have formally asked the U.S. Securities and Exchange Commission (SEC) to set up a safe harbor program for certain non-fungible token (NFT) and decentralized finance (DeFi) applications. Their request, outlined in a letter to SEC Commissioner and Crypto Task Force head Hester Peirce, argues that some modern blockchain applications do not pose the risks that broker-dealer registration under the Exchange Act was designed to address.

The move follows the U.S. President’s Working Group on Digital Assets recommendation to provide regulatory relief for specific DeFi service providers. SEC Chair Paul Atkins also recently directed agency staff to update outdated rules affecting crypto and blockchain use cases.

In their letter, a16z and the DeFi group stressed that only apps without high-risk features should qualify for a safe harbor. Such a policy, they said, would bring regulatory clarity, preserve the SEC’s oversight where necessary, and ensure that developers can innovate in the U.S. without fear of inappropriate legal classification.

This isn’t a16z’s first push for regulatory change – earlier this year, the firm proposed an NFT-focused safe harbor and recommended similar protections for airdrops and network tokens.

The proposal comes in the context of a large, consolidated broker-dealer sector. As of 2024, about 3,340 broker-dealers, holding $6.4 trillion in assets, were registered with the SEC. The agency has already created a Special Purpose Broker-Dealer (SPBD) category for digital asset custody, though it clarified that SPBD status is optional and standard rules still apply to digital asset and traditional securities custody alike.

How the SEC and Commodity Futures Trading Commission (CFTC) ultimately treat digital assets could shift significantly if Congress passes comprehensive crypto market structure legislation. The CLARITY Act – already passed by the House – is now awaiting Senate consideration.

Final Thought

If adopted, a safe harbor could reshape the playing field for NFT and DeFi developers in the U.S., removing regulatory uncertainty and encouraging innovation – but only if policymakers balance flexibility with safeguards for investor protection.