SEC Seeks Crypto Clarity with New Proposal
On February 21, 2025, SEC Commissioner Hester Peirce shared a statement titled “There Must Be Some Way Out of Here.” inspired by Bob Dylan’s lyrics, it expressed frustration and a call for clarity in crypto regulation. The SEC then issued a Request for Information, inviting public input on classifying crypto assets as securities.
Andreessen Horowitz (A16z), a venture capital giant, responded on March 13 with a “control-based decentralization framework.” This proposal suggests that if a blockchain network is open and autonomous, its tokens shouldn’t be treated as securities.
While the idea seems logical, experts like Alice Frei, Head of Security and Compliance at Outset PR, see complexities. Frei argues that a technology-neutral approach, which treats crypto like traditional assets, doesn’t fit. “crypto is fundamentally different,” she says.”Each innovation introduces new economic behaviors.”
- Bitcoin offers decentralized digital scarcity.
- Ethereum enables programmable governance.
- DAOs support collective decision-making.
- NFTs provide digital ownership.
- DeFi creates permissionless financial markets.
Frei believes ignoring these differences means regulating crypto’s appearance, not its essence. Another A16z argument is that if a token’s design is fully coded, its value shouldn’t rely on third-party efforts. Though, Frei thinks this logic is flawed.
