North Carolina House Representative Patrick McHenry has proposed a bill that would amend one of the laws governing the United States Securities and Exchange Commission (SEC) to provide a safe harbor for certain token projects. In a draft of the “Clarity for Digital Tokens Act of 2021,” provided by the House Committee on Financial Services, McHenry suggested amending the Securities Act of 1933 to establish a safe harbor for token development teams. He proposed letting projects offer tokens without registering for up to three years, during which time teams would be given the opportunity to create a fully decentralized network. McHenry’s bill seemingly builds on an initiative from SEC commissioner Hester Peirce, who has called for the creation of a safe harbor for projects that raise funds to build decentralized networks after first floating the concept in 2019. Peirce’s proposal likewise suggests granting network developers a three-year grace period to build a decentralized network without threats of legal action from the SEC.