a16z and DeFi Education Fund Propose SEC Safe Harbor for DEXs

Andreessen Horowitz (a16z) and the DeFi Education Fund have submitted a joint proposal to SEC Commissioner Hester Peirce, suggesting a safe harbor mechanism to exempt decentralized exchange (DEX) protocols and their front-ends from being classified as exchanges under the Securities Exchange Act. The proposal outlines criteria for DEXs, including non-custodial, automated, and permissionless features, while limiting front-end functions to maintenance and security updates. Additionally, a16z proposed that the SEC establish a registration system for centralized crypto trading platforms modeled after the 1998 Reg ATS, allowing them to trade crypto securities, non-securities, and mixed pairs within a regulated framework.