Vault12 Points Out Lack of Regulatory Certainty in SEC's Token Safe Harbor Proposal

Vault12 submitted a comment letter to the U.S. Securities and Exchange Commission (SEC), pointing out that the proposed token safe harbor framework fails to alleviate concerns from centralized exchanges regarding token listings. Trading platforms are worried about potential future challenges from the SEC regarding the legal status of tokens. Vault12 raised $17.45 million from 38 investors through its future token protocol in 2018, and its issued Vault Guardian Token (VGT) has yet to be listed on any centralized exchange. The project has fulfilled or abandoned all commitments in its white paper, yet exchanges still require confirmation that the SEC will not deem VGT to continue to be bound by the original investment contract. The SEC's proposed "Regulation Crypto Assets" plan, introduced in August this year, aims to provide exemptions for token financing and allows eligible projects to terminate the association between tokens and original investment contracts through a safe harbor mechanism. Vault12 suggests adding a 60-day objection period, during which if the SEC does not raise any objections, eligible filings should have final effect on the agency, except in cases of fraud or material misrepresentation.

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