Safe Harbor

Re: Recommendations Regarding a Safe Harbor for Certain Airdrops and Incentive-Based Rewards of Network Tokens

March 13, 2025
  • The proposal recommends clear criteria for excluding certain airdrops and incentive-based rewards of network tokens from federal securities laws.
  • It argues that Section 5 registration is unwarranted for airdrops and incentive-based rewards that do not pose the risks federal securities laws are intended to address.
  • The proposal emphasizes the need for robust transfer restrictions to prevent insiders from exploiting asymmetric information and capitalizing on token volatility.

Last Reviewed or Updated: April 16, 2025