North Carolina House Representative Patrick McHenry reportedly put up a proposal for a bill, aiming to adjust one of the laws governing the US SEC, to establish a safe harbour for particular token initiatives. 

Specifically, via the draft version of “Clarity for Digital Tokens Act of 2021” proposed by the House Committee on Financial Services, McHenry recommended bringing changes to the Securities Act of 1933, to create a safe harbor for token development teams. 

Particularly, McHenry reportedly suggested giving initiatives the freedom to provide tokens without finalizing the registration for a maximum of three years, during which time teams would be offered the opportunity to create a fully decentralized network.

McHenry’s bill reportedly appears to be developed upon the initial foundation of SEC commissioner Hester Peirce’s idea, who urged for the creation of a safe harbor, catering to initiatives looking to carry out fundraising to develop decentralized networks, following the initial mention of the concept two years prior. 

Peirce’s proposal – bearing the same nature – reportedly recommends offering network developers a grace period lasting to three years, to design a decentralized network without threats of legal action from the SEC.

“If adopted, the proposed safe harbor could be the most groundbreaking development for the U.S. cryptocurrency market to date. By putting development first and giving projects a runway to build robust networks, the proposed safe harbor puts an important stake in the ground towards supporting American access and acceptance of digital asset markets.” Peirce further remarked. 

The proposal reportedly surfaced following SEC chair Gary Gensler delivered his comments to the committee, in terms of oversight of the government agency.