Safe Harbors

I am not opposed to regulation. I think that industry needs to play by a set of rules that ensures things like public safety, fair dealing, etc.

But I do think that regulating an industry or a company too early in its life can be very damaging to innovation and the development of new technologies and new industries.

So I am a big fan of Safe Harbors.

A safe harbor is a stipulation in a given rule that certain entities or certain situations will not be deemed in violation of it.

In general, I like the idea that small companies or nascent industries are given safe harbors until they are at a size where compliance becomes affordable and/or possible.

My partner Albert wrote a post last week proposing some safe harbors for the crypto token sector.

Crypto tokens seem like an ideal technology/sector for safe harbors. Clearly this sector needs some rules and regulations. But subjecting projects and technologies to these rules too early in their life or subjecting projects and technologies to inappropriate rules and regulations would be devastating.