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- Nidhi Kolhapur
Nidhi Kolhapur
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
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Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Aug 13, 2025 12:50 UTC
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a16z & DeFi Education Fund Propose “Safe Harbor” for Blockchain Apps
Andreessen Horowitz and DeFi Education Fund propose SEC “safe harbor” to protect non-custodial DeFi apps from broker rules.
Proposal seeks clear guidelines for developers, aligning with SEC’s shift toward self-custody rights and pro-crypto innovation.
Andreessen Horowitz (a16z), a major venture capital firm, has spent years helping its portfolio companies sail through complex U.S. regulations.
It is now writing to the SEC to ask for clear rules so that DeFi platforms can grow safely without getting caught up in securities law issues.
The Safe Harbour Proposal
On Wednesday, a16z and the DeFi Education Fund put forward a proposal to the SEC, seeking regulatory relief for certain blockchain apps. It suggests a “safe harbor” for certain decentralized apps, ensuring that broker registration rules fit the realities of blockchain systems.
According to the proposal, to qualify, an app must not
- hold user funds,
- exercise control over transactions,
- provide investment advice, or solicit investments,
- and it should operate only on blockchain networks that are fully decentralized, autonomous, and non-custodial.
A16z points out that most apps are non-custodial, passive software tools that allow users to interact directly with a public, decentralized network and protocol infrastructure.
If an app meets these criteria, it does not function like a traditional broker and avoids the typical legal risks. It simply allows users to execute transactions automatically and transparently, and should generally be considered exempt from broker registration.
Clear Rules for Developers and DeFi Innovation
The letter claims that the “safe harbor” would give clear rules for developers, while letting the SEC still oversee risky activities. This would ensure that creators can build in the U.S. without worrying about outdated laws being wrongly applied to modern software.
SEC Embraces Crypto-Friendly Shift
The push for “safe harbor” comes as the SEC shifts toward a more crypto-friendly stance.
Previously, the agency had signaled that apps like Coinbase Wallet, Uniswap, and OpenSea might need to register as brokers. However, those claims and investigations were later dropped
A recent report from the President’s Working Group has also suggested easing rules for certain Defi providers.
Self-Custody- A Core American Right
At the recent Crypto Task Force Roundtable on “DeFi and the American Spirit,” SEC Chair Paul Atkins had said that the right to self-custody of one’s private property is a “foundational American value that should not disappear when one logs onto the internet.”
The SEC is also exploring ways to back self-custodial and on-chain innovation, like offering guidance, updating rules, or creating an “innovation exemption” so that developers can safely bring crypto products to market.
Even though Congress has not passed full digital asset laws yet, Atkins has kicked off “Project Crypto” to push forward crypto-friendly initiatives and give the market a clearer direction.
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FAQs
The VC firm proposes exempting non-custodial, decentralized apps from broker registration if they don’t hold funds, control transactions, or give investment advice – protecting true DeFi projects.
The proposal complements the SEC’s initiative to clarify crypto rules, with Chair Atkins emphasizing self-custody as a “foundational American value” in recent roundtables.
While Congress debates broader crypto laws, a16z’s proposal could fast-track guidance – with SEC’s “Project Crypto” reforms potentially emerging as early as Q1 2026.
Yes 
No 
