Blockchain Association Urges SEC to Set Token Decentralization Standards

The Blockchain Association is asking the SEC to define when a crypto token is decentralized enough to no longer be treated as an investment contract, seeking a federal standard for token status. In a comment letter on the SEC's crypto-asset regulation proposal, the industry group recommended raising the startup exemption cap to $10 million and the fundraising exemption cap to $150 million. It also proposed allowing on-chain transparency to substitute for audits under the fundraising exemption and excluding airdrops from its cap. The association called for a third-party filing safe harbor for tokens already in circulation. It proposed open-source code and the absence of unilateral censorship power as possible measures of decentralization.

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