Gary DeWaal, Financial Markets and Funds special counsel, spoke with Law360 on a recent draft proposal from SEC Commissioner Hester Peirce that would create a three-year exemption from Securities Act of 1933 requirements to companies launching digital tokens. The exemption would allow companies time to develop a network to a point of maturity where the tokens would no longer fit the definition of a security. Referencing the status quo uncertainty today regarding the regulatory status of certain digital tokens, Gary stated, "I think it's really clever. Even though there's a recognition that instruments can morph, the problem is there doesn't seem to be a willingness to draw a bright line. Unless there's a willingness to draw a bright line, it's problematic." ("Crypto Safe Harbor Applauded, But Long Road Lies Ahead," February 7, 2020)