- Andreessen Horowitz and DEF seek SEC safe harbor for non-custodial DeFi front-end developers.
- Proposal follows Tornado Cash case and SEC actions against Coinbase Wallet, Uniswap, and OpenSea.
- Tether plans U.S. stablecoin launch by year-end under GENIUS Act, targeting a checking account model.
A joint appeal by venture capital firm Andreessen Horowitz and the DeFi Education Fund (DEF) has raised a new focus on the regulatory status of decentralized finance developers in the United States. The groups have submitted a proposal to the Securities and Exchange Commission (SEC) seeking a formal safe harbor for front-end developers of non-custodial blockchain applications.
The proposal, sent to Commissioner Hester Peirce, argues that software interfaces for non-custodial DeFi apps, NFT marketplaces, and wallet integrations should not be subject to broker-dealer registration. The suggested system would apply only to platforms where users control their funds, sign their transactions, and exercise no discretionary control by the developer.
Applications meeting the criteria could not provide investment advice, solicit users, or display anything beyond neutral market data. They could only link to decentralized protocols that are autonomous, permissionless, and non-custodial, with limited exceptions for early-stage projects.
Amanda Tuminelli, DEF’s Executive Director, noted that the approach was built to reflect the nature of early-stage software, which acts as a passive tool enabling direct interaction with public blockchain infrastructure.
The call for regulatory clarity comes after developer Roman Storm was convicted in the Tornado Cash case. Prosecutors argued that building software that allows interaction with decentralized protocols could lead to criminal liability.
The proposal also cites past SEC actions, including its case against Coinbase Wallet and Wells Notices to Uniswap Labs and OpenSea, as examples of possible risks without safe harbor protections. However, Andreessen and DEF warned that without clear exemptions, U.S. blockchain development could shift overseas, ceding innovation to foreign jurisdictions.
Tether CEO Details U.S. Market Strategy
In parallel to the policy discussions, Tether CEO Paolo Ardoino has disclosed plans for the company’s entry into the U.S. stablecoin market. Speaking during his first visit to Washington, D.C., Ardoino said the new domestic product will differ from USDT’s role in emerging markets, functioning more like a checking account than a cash substitute.
The launch is expected before the end of the year, driven in part by the recently passed GENIUS Act. Ardoino described meetings with lawmakers, regulators, and other crypto executives as part of efforts to position Tether in the evolving U.S. regulatory environment.
