{"id":7433,"date":"2026-10-21T13:43:22","date_gmt":"2026-10-21T10:43:22","guid":{"rendered":"https:\/\/legalbit.top\/en\/saft-vs-safe\/"},"modified":"2026-10-23T17:15:05","modified_gmt":"2026-10-23T14:15:05","slug":"saft-vs-safe","status":"publish","type":"post","link":"https:\/\/legalbit.top\/en\/saft-vs-safe\/","title":{"rendered":"SAFT vs SAFE: What Is the Difference and Which Should a Crypto Project Choose"},"content":{"rendered":"\n<div class=\"lbm\"><svg width=\"0\" height=\"0\" style=\"position:absolute\" aria-hidden=\"true\"><symbol id=\"i-list\" viewBox=\"0 0 24 24\"><path d=\"M9 6h11M9 12h11M9 18h11\"\/><path d=\"M4 6h.01M4 12h.01M4 18h.01\"\/><\/symbol><symbol id=\"i-user\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"8\" r=\"4\"\/><path d=\"M4 21c0-4 3.6-7 8-7s8 3 8 7\"\/><\/symbol><symbol id=\"i-ban\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M5.6 5.6l12.8 12.8\"\/><\/symbol><symbol id=\"i-layers\" viewBox=\"0 0 24 24\"><path d=\"M12 3l9 5-9 5-9-5z\"\/><path d=\"M3 13l9 5 9-5\"\/><\/symbol><symbol id=\"i-eye\" viewBox=\"0 0 24 24\"><path d=\"M2 12s4-7 10-7 10 7 10 7-4 7-10 7S2 12 2 12z\"\/><circle cx=\"12\" cy=\"12\" r=\"3\"\/><\/symbol><symbol id=\"i-doc\" viewBox=\"0 0 24 24\"><path d=\"M7 3h8l4 4v14H7z\"\/><path d=\"M15 3v4h4M10 12h6M10 16h6\"\/><\/symbol><symbol id=\"i-pen\" viewBox=\"0 0 24 24\"><path d=\"M4 20l4-1 11-11-3-3L5 16z\"\/><path d=\"M14 6l3 3\"\/><\/symbol><symbol id=\"i-alert\" viewBox=\"0 0 24 24\"><path d=\"M12 3l10 18H2z\"\/><path d=\"M12 10v4M12 17.5h.01\"\/><\/symbol><symbol id=\"i-bulb\" viewBox=\"0 0 24 24\"><path d=\"M9 18h6M10 21h4\"\/><path d=\"M12 3a6 6 0 0 0-3.5 10.9c.6.5 1 1.2 1 2.1h5c0-.9.4-1.6 1-2.1A6 6 0 0 0 12 3z\"\/><\/symbol><symbol id=\"i-info\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 11v5M12 8h.01\"\/><\/symbol><symbol id=\"i-coin\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M14.5 9.5c-.5-1-1.5-1.5-2.5-1.5-1.4 0-2.5.8-2.5 2s1.1 1.6 2.5 2 2.5.8 2.5 2-1.1 2-2.5 2c-1 0-2-.5-2.5-1.5M12 6.5v11\"\/><\/symbol><symbol id=\"i-clock\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M12 7v5l3 2\"\/><\/symbol><symbol id=\"i-globe\" viewBox=\"0 0 24 24\"><circle cx=\"12\" cy=\"12\" r=\"9\"\/><path d=\"M3 12h18M12 3c2.5 2.7 3.8 5.7 3.8 9s-1.3 6.3-3.8 9c-2.5-2.7-3.8-5.7-3.8-9S9.5 5.7 12 3z\"\/><\/symbol><\/svg><section class=\"lbm-intro\"><div class=\"lbm-intro-main\"><p class=\"lbm-lead\">A SAFE and a SAFT work the same way: the investor pays now and receives the asset later. The difference is what the investor receives: equity under a SAFE, tokens under a SAFT. That drives the price, the regulatory risk and who the instrument suits. We go through how the two instruments differ, how to choose between them and when a SAFE with a token warrant fits.<\/p><p class=\"lbm-verified\">Checked on 21 October 2026. Rules and sources are current as of this date.<\/p><ul class=\"lbm-toc\"><li><a href=\"#safe\">SAFE<\/a><\/li><li><a href=\"#saft\">SAFT<\/a><\/li><li><a href=\"#compare\">Comparison<\/a><\/li><li><a href=\"#sec\">SEC in 2026<\/a><\/li><li><a href=\"#choose\">Which to choose<\/a><\/li><li><a href=\"#faq\">FAQ<\/a><\/li><\/ul><\/div><\/section><section id=\"safe\"><h2>What is a SAFE<\/h2><p style=\"max-width:70ch\">The SAFE (Simple Agreement for Future Equity) was created by Carolynn Levy at Y Combinator in 2013. It is a short contract: the investor puts money into a startup now and gets the right to shares later. The shares appear automatically when the company closes a priced round.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-ban\"\/><\/svg><\/span><h3>Not debt, not equity<\/h3><p>Y Combinator describes the SAFE as having no interest and no maturity date. It becomes stock only when it converts into preferred stock in a priced round.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><h3>Cap and discount<\/h3><p>The valuation cap sets the maximum valuation at which the SAFE converts. The discount gives a price below the round price, usually 10-20%. The MFN (most favoured nation clause) version has no cap or discount and takes the best terms from any SAFE issued later.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>Exit and dissolution<\/h3><p>On a sale of the company or an IPO (initial public offering), the investor receives the greater of the amount invested or what they would get if the SAFE converted into common stock. On dissolution the investment amount is returned. SAFE claims rank behind debt.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><h3>Transfer and investors<\/h3><p>A SAFE cannot be transferred without the company&#8217;s consent, except to an affiliate of the investor. SAFE investors must be accredited.<\/p><\/div><\/div><\/section><section id=\"saft\"><h2>What is a SAFT<\/h2><p style=\"max-width:70ch\">The SAFT (Simple Agreement for Future Tokens) was described in The SAFT Project white paper of 2 October 2017 by Juan Batiz-Benet, Jesse Clayburgh and Marco Santori (Protocol Labs and the law firm Cooley). It is modelled on the SAFE: the investor pays the project at once and receives tokens after the network launches.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><h3>Payment upfront<\/h3><p>The investor pays the price at once and gets no tokens at that moment. Tokens are delivered after the network launch, and the SAFT rights end on delivery.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Discount<\/h3><p>The investor gets a discount to the price of the eventual token sale.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-user\"\/><\/svg><\/span><h3>Investors<\/h3><p>In the US the sale goes only to accredited investors, for example under Rule 506(c) of Regulation D with a Form D notice to the SEC (US Securities and Exchange Commission). The SAFT itself is not transferable.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><h3>The authors&#8217; position<\/h3><p>The white paper treated the SAFT itself as a security (an investment contract) and expected to present the token, once the network is live, as a consumer product rather than a security.<\/p><\/div><\/div><\/section><section id=\"sec\"><h2>Regulatory status: what changed in 2026<\/h2><p style=\"max-width:70ch\">On 17 March 2026 the SEC published the interpretation Application of the Federal Securities Laws to Certain Types of Crypto Assets (Release No. 33-11412), effective 23 March 2026. It replaced the 2019 Framework for &#8220;Investment Contract&#8221; Analysis of Digital Assets, which the SEC withdrew.<\/p><div class=\"lbm-roles\"><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><h3>Five categories<\/h3><p>The SEC groups crypto assets into digital commodities, digital collectibles, digital tools, stablecoins and digital securities. The first three are not securities in themselves.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><h3>Investment contract<\/h3><p>Such an asset can still be sold under an investment contract, and an investment contract is a security. The token does not become a security because of that.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-clock\"\/><\/svg><\/span><h3>Deferred delivery example<\/h3><p>The interpretation names a &#8220;simple agreement for future tokens&#8221;. The sale is complete when the contract is signed, even if the tokens are delivered later. From then the tokens are tied to the investment contract regardless of the delivery date.<\/p><\/div><div class=\"lbm-role\"><span class=\"lbm-ico\"><svg><use href=\"#i-eye\"\/><\/svg><\/span><h3>After delivery<\/h3><p>Tokens stop being tied to the investment contract once the buyer can no longer expect profit from the issuer&#8217;s efforts, for example when the issuer has publicly disclosed that it completed the key managerial efforts it promised. If the issuer keeps making such efforts or has not disclosed completing them, the tie remains.<\/p><\/div><\/div><div class=\"lbm-co soft\"><span class=\"lbm-ico\"><svg><use href=\"#i-bulb\"\/><\/svg><\/span><div><b>Practical takeaway<\/b><p>On the SEC&#8217;s logic, a token sale under a SAFT is an investment contract transaction from signing. What happens to the token after delivery depends on what the project promised investors and whether it delivered.<\/p><\/div><\/div><div class=\"lbm-co dark\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><b>The Telegram lesson<\/b><p>According to the SEC, Telegram sold about 2.9 billion Gram tokens to 171 initial purchasers. In March 2020 the Southern District of New York enjoined delivery, finding the SEC likely to show that the sales were part of a scheme to distribute the tokens on the secondary market. In June 2020 Telegram agreed to a final judgment without admitting or denying the allegations: return more than $1.2 billion and pay an $18.5 million penalty.<\/p><\/div><\/div><\/section><div class=\"lbm-svc\"><div><b>Need help with this topic?<\/b><p>We will review your situation and propose a solution for your project.<\/p><\/div><a class=\"lbm-svc-btn popmake-4929\" href=\"#\" role=\"button\">Contact us<\/a><\/div><section id=\"compare\"><h2>SAFT vs SAFE: comparison<\/h2><p style=\"max-width:70ch\">Terms as described by Y Combinator and The SAFT Project white paper.<\/p><div class=\"lbm-cmp\"><table><thead><tr><th><\/th><th>SAFE<\/th><th>SAFT<\/th><\/tr><\/thead><tbody><tr><th scope=\"row\">What the investor gets<\/th><td>Company shares<\/td><td>Network tokens<\/td><\/tr><tr><th scope=\"row\">When<\/th><td>At a priced round<\/td><td>After the network launches and tokens work<\/td><\/tr><tr><th scope=\"row\">Legal nature<\/th><td>Not debt, not equity until conversion<\/td><td>Contract for future token delivery<\/td><\/tr><tr><th scope=\"row\">Price<\/th><td>Valuation cap and discount<\/td><td>Discount to the eventual token sale price<\/td><\/tr><tr><th scope=\"row\">Term<\/th><td>No maturity date<\/td><td>Tied to the network launch<\/td><\/tr><tr><th scope=\"row\">Transfer<\/th><td>Only with company consent or to an affiliate<\/td><td>Not transferable<\/td><\/tr><tr><th scope=\"row\">Investors<\/th><td>Accredited<\/td><td>Accredited in the white paper model (506(c))<\/td><\/tr><tr><th scope=\"row\">Main risk<\/th><td>Dilution, conversion terms<\/td><td>Status of the token and of the sale<\/td><\/tr><\/tbody><\/table><\/div><\/section><section id=\"choose\"><h2>Which to choose<\/h2><ol class=\"lbm-steps\"><li><span class=\"lbm-ico\"><svg><use href=\"#i-doc\"\/><\/svg><\/span><div><h3>SAFE<\/h3><p>Fits when the project is an ordinary company that needs capital for equity and the token does not exist yet or is secondary. Venture funds know the instrument and it closes fast.<\/p><span class=\"lbm-tag\">Start here<\/span><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-coin\"\/><\/svg><\/span><div><h3>SAFT<\/h3><p>Fits when you build a protocol or network, the token is the core of the economy, and investors are crypto-native funds that want tokens rather than a stake. The document needs a legal assessment of the token and the whole sale structure.<\/p><\/div><\/li><li><span class=\"lbm-ico\"><svg><use href=\"#i-layers\"\/><\/svg><\/span><div><h3>Both together<\/h3><p>If the project has both a company and a network, a SAFE with a token warrant is common. We compared that option with the SAFT in a <a href=\"\/en\/saft-vs-token-warrant\/\">separate article<\/a>.<\/p><\/div><\/li><\/ol><div class=\"lbm-co dark\"><span class=\"lbm-ico\"><svg><use href=\"#i-alert\"\/><\/svg><\/span><div><b>Common mistakes<\/b><p>Choosing a SAFT out of habit when there is no token. Assuming the token is &#8220;not a security&#8221; by itself: the SEC looks at what the project promised and does, and the label &#8220;utility&#8221; decides nothing. Letting the contract, the white paper and the tokenomics contradict each other. Not checking private placement rules in the investors&#8217; countries.<\/p><\/div><\/div><\/section><figure class=\"lbm-pull\"><q>A SAFE sells a stake in the company, a SAFT sells a future token. The legal risks are different.<\/q><cite>The LegalBit team<\/cite><\/figure><section id=\"faq\"><h2>FAQ<\/h2><div class=\"lbm-faq\"><details><summary>What is the main difference between a SAFT and a SAFE?<\/summary><p>Under a SAFE the investor receives company shares, under a SAFT network tokens. A SAFE converts at a priced round, a SAFT is performed after the network launches.<\/p><\/details><details><summary>Can a SAFE be used to sell tokens?<\/summary><p>A SAFE gives a right to shares, not tokens. If the investor wants both equity and tokens, a token warrant or a separate agreement is added to the SAFE.<\/p><\/details><details><summary>Are accredited investors required?<\/summary><p>Y Combinator states that SAFE investors must be accredited. In the SAFT white paper model the sale also goes to accredited investors under Rule 506(c). Other jurisdictions have different rules.<\/p><\/details><details><summary>Is a token sold under a SAFT a security?<\/summary><p>On the SEC&#8217;s 2026 position the token itself may not be a security, but its sale under a SAFT is made under an investment contract. After delivery the status depends on whether the issuer did what it promised and disclosed it publicly.<\/p><\/details><\/div><p class=\"lbm-more\"><b>See also: <\/b><a href=\"\/en\/saft-vs-token-warrant\/\">SAFT vs Token Warrant<\/a>; <a href=\"\/en\/legal-support-for-token-sales-procedure\/\">Legal Support for Token Sales Procedure<\/a>; <a href=\"\/en\/sec-regulation-crypto-assets\/\">Regulation Crypto Assets: How the SEC Proposes to Regulate Token Sales in the US<\/a>; <a href=\"\/en\/p2e-token-security-payment-or-game-currency\/\">P2E game token: security, payment instrument or in-game currency<\/a>. Services: <a href=\"\/en\/crypto-legal-services\/\">legal services for crypto projects<\/a>.<\/p><div class=\"lbm-src\"><b>Sources<\/b><ul><li><a href=\"https:\/\/www.ycombinator.com\/documents\" rel=\"nofollow noopener\" target=\"_blank\">Y Combinator: The SAFE<\/a><\/li><li><a href=\"https:\/\/saftproject.com\/static\/SAFT-Project-Whitepaper.pdf\" rel=\"nofollow noopener\" target=\"_blank\">The SAFT Project: white paper (Cooley, Protocol Labs), 2 October 2017<\/a><\/li><li><a href=\"https:\/\/www.sec.gov\/files\/rules\/interp\/2026\/33-11412.pdf\" rel=\"nofollow noopener\" target=\"_blank\">SEC: Application of the Federal Securities Laws to Certain Types of Crypto Assets, Release 33-11412 (17 March 2026)<\/a><\/li><li><a href=\"https:\/\/www.sec.gov\/corpfin\/framework-investment-contract-analysis-digital-assets\" rel=\"nofollow noopener\" target=\"_blank\">SEC: Framework for &#8220;Investment Contract&#8221; Analysis of Digital Assets (withdrawn)<\/a><\/li><li><a href=\"https:\/\/www.sec.gov\/newsroom\/press-releases\/2020-146\" rel=\"nofollow noopener\" target=\"_blank\">SEC: Telegram to return $1.2 billion to investors (2020)<\/a><\/li><\/ul><\/div><\/section><\/div>\n\n\n\n<div class=\"lb-ac\"><h2>This is what we do<\/h2><p>How we help projects with this topic:<\/p><ul><li><a href=\"https:\/\/legalbit.top\/en\/legal-documents\/\">Contracts and documents<\/a><\/li><li><a href=\"https:\/\/legalbit.top\/en\/crypto-legal-services\/\">Legal services for crypto projects<\/a><\/li><\/ul><\/div>\n\n\n\n<script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"BlogPosting\", \"headline\": \"SAFT vs SAFE: What Is the Difference and Which Should a Crypto Project Choose\", \"description\": \"SAFT vs SAFE: what the investor receives, how price and timing work, how the SEC treats token sales since 2026, and which instrument a project should choose.\", \"url\": \"https:\/\/legalbit.top\/en\/saft-vs-safe\/\", \"mainEntityOfPage\": \"https:\/\/legalbit.top\/en\/saft-vs-safe\/\", \"image\": \"https:\/\/legalbit.top\/wp-content\/uploads\/2026\/10\/saft_safe-scaled.webp\", \"datePublished\": \"2026-10-21T09:30:00Z\", \"dateModified\": \"2026-10-21T09:30:00Z\", \"inLanguage\": \"en\", \"author\": {\"@type\": \"Organization\", \"name\": \"LegalBit\", \"url\": \"https:\/\/legalbit.top\/\"}, \"publisher\": {\"@type\": \"Organization\", \"name\": \"LegalBit\", \"url\": \"https:\/\/legalbit.top\/\"}}<\/script>\n<script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"What is the main difference between a SAFT and a SAFE?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Under a SAFE the investor receives company shares, under a SAFT network tokens. A SAFE converts at a priced round, a SAFT is performed after the network launches.\"}}, {\"@type\": \"Question\", \"name\": \"Can a SAFE be used to sell tokens?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"A SAFE gives a right to shares, not tokens. If the investor wants both equity and tokens, a token warrant or a separate agreement is added to the SAFE.\"}}, {\"@type\": \"Question\", \"name\": \"Are accredited investors required?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Y Combinator states that SAFE investors must be accredited. In the SAFT white paper model the sale also goes to accredited investors under Rule 506(c). Other jurisdictions have different rules.\"}}, {\"@type\": \"Question\", \"name\": \"Is a token sold under a SAFT a security?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"On the SEC's 2026 position the token itself may not be a security, but its sale under a SAFT is made under an investment contract. After delivery the status depends on whether the issuer did what it promised and disclosed it publicly.\"}}]}<\/script>\n","protected":false},"excerpt":{"rendered":"<p>A SAFE and a SAFT work the same way: the investor pays now and receives the asset later. The difference is what the investor receives.<\/p>\n","protected":false},"author":1,"featured_media":7432,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[81],"tags":[127,104,126,110,109],"post_folder":[],"class_list":["post-7433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tokens-and-nft","tag-contracts","tag-crypto","tag-saft","tag-securities","tag-token-sales"],"_links":{"self":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/comments?post=7433"}],"version-history":[{"count":22,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7433\/revisions"}],"predecessor-version":[{"id":8188,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/posts\/7433\/revisions\/8188"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media\/7432"}],"wp:attachment":[{"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/media?parent=7433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/categories?post=7433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/tags?post=7433"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/legalbit.top\/en\/wp-json\/wp\/v2\/post_folder?post=7433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}