Why centralized exchanges refuse to list legacy crypto tokens without explicit SEC immunity

The issuer of a cryptocurrency token that has never traded on a major exchange has presented an early test of the U.S. Securities and Exchange Commission’s (SEC) proposed safe harbor framework. Crypto wallet backup firm Vault12, backed by Winklevoss Capital and Naval Ravikant, warned that the SEC’s proposed token safe harbor could leave exchanges unwilling to list tokens because of the risk of a later regulatory challenge. The safe harbor is part of the SEC’s Regulation Crypto Assets proposal , issued in August to establish conditions under which a token would no longer be subject to its original investment contract.