Exchanges Demand SEC Immunity Before Listing Legacy Crypto Tokens

SEC immunity — Major centralized exchanges are refusing to list legacy crypto tokens like Vault12’s VGT despite a proposed SEC safe harbor, demanding explicit immunity from future enforcement actions before proceeding.

Vault12, which raised $17.45 million in a 2018 token sale for its VGT token, says it has met or dropped all promises that could classify it as a security. However, the token has remained unlisted for eight years because exchanges fear the SEC could later challenge a token’s exit from securities regulations even after a safe harbor period.

The firm, backed by Winklevoss Capital and Naval Ravikant, argues the SEC’s proposed framework lacks finality. Exchanges want conclusive assurance that the regulator will not pursue enforcement after a token transitions, a guarantee not provided under current proposals.

Vault12 has suggested a fix where SEC filings become binding if the agency does not object within 60 days, which it claims would give trading platforms the legal certainty required to list. This case presents an early test of how workable the SEC’s safe harbor will be for tokens seeking to decentralize over time.