Analysis: SEC token safe harbor proposal still lacks certainty, exchanges worry about future liability

On October 21, citing CoinDesk, crypto wallet backup company Vault12 submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) on Tuesday, pointing out that the SEC's proposed token safe harbor framework fails to adequately address centralized exchanges' listing concerns, and that trading platforms still worry the SEC may retroactively challenge the legal status of tokens in the future.

The "Regulation Crypto Assets" proposal put forward by the SEC in August this year aims to provide an exemption for token financing and allow eligible projects to terminate the link between tokens and the original investment contract through a safe harbor mechanism. Vault12 recommended adding a 60-day objection period, under which eligible filings would become final and binding on the agency if the SEC does not raise objections within that period, except in cases of fraud or material misrepresentation.