a16z submitted a joint letter to the U.S. SEC, proposing to establish a "safe harbor" for DEX

a16z and DeFi Education Fund (DEF) submitted a proposal to the U.S. Securities and Exchange Commission (SEC) on September 14, suggesting a "safe harbor" from exchange registration requirements for eligible decentralized exchanges (DEX) and their front-end applications (DEX Apps).

The proposal suggests that eligible DEX should possess four characteristics: non-custodial, automated, permissionless, and trustlessly neutral; DEX Apps should maintain non-custodial status, present market data based on objective and verifiable parameters, not exercise discretion over trade execution, and limit developer activities to specific technical functionalities.