Crypto Task Force Written Input

Please find written input submissions to the Crypto Task Force below. The written input is posted without modification. We hope sharing the submissions will help encourage productive dialogue and continued engagement. Please note that the “Key Points” and “Topics” are AI generated. AI can make mistakes, and the Key Points and Topics are not a replacement for you reading the submissions. The Crypto Task Force has not reviewed these AI-generated summaries for accuracy or completeness. If you believe a Key Point or Topic is inaccurate, please email the Crypto Task Force at crypto@sec.gov. The written input provided to the SEC and posted on this page does not necessarily reflect the views of the Crypto Task Force or others in the U.S. Securities and Exchange Commission.

Date Written Input Topic(s) Key Points
Rita Mitchell, Georgia Society of CPAs

Letter to the Crypto Task Force 		Custody, Regulatory Sandbox, Security Status, Trading
  • Lack of transparency and adequate disclosure requirements for transactions triggering "security concerns".
  • Need for clear regulatory guidelines on investor recourse and exchange's right to freeze accounts.
  • Specific disclosure and communication requirements for locking investor accounts, including reasons, steps, and timeline for resolution.
CoinShares International Limited

RE: It’s Time to Modernize the RIC Tax Rules 		Crypto ETPs, Crypto Lending, Custody, Public Offerings, Safe Harbor, Security Status, Tokenization, Trading
  • Ease the asset diversification requirements in Subchapter M to allow more flexibility for funds.
  • Expand the types and amounts of income that funds can receive without losing regulated investment company (RIC) status.
  • Modify the RIC excise tax distribution requirements to reduce compliance costs impacting investment returns.


 
CoinShares International Limited

RE: Letter to Crypto Task Force 		Crypto ETPs, Custody, Public Offerings, Security Status, Trading
  • CoinShares International Limited discussed the structure and regulatory compliance of their European digital asset ETPs, highlighting their fully collateralized and bankruptcy-remote nature.
  • CoinShares emphasized the importance of staking rewards for investors in spot proof of stake digital asset ETPs and recommended that the SEC avoid setting arbitrary limits on staking percentages.
  • CoinShares requested the SEC to revoke the 2018 open letter from Division of Investment Management Director Dalia Blass, which constrains registered investment advisors' ability to invest in digital assets.
PraSaga Foundation

SagaStandards: Transforming Finance with a Global Standards Registry 		Custody, Public Offerings, Regulatory Sandbox, Security Status, Tokenization, Trading
  • Implementation of open standards for tokenized finance to enhance transparency and reduce fraud.
  • Potential savings of $155B-$316B annually through reduced transaction fees, fraud, and operational costs.
  • Collaboration with international standards organizations (ISO, FIX, XBRL, ISDA) to align financial reporting and trading standards.
     
Kevin Jacobs, Phantom Technologies, Inc.

Response to the Crypto Task Force’s Request for Comment: Regarding Project Open 		Custody, Security Status, Tokenization, Trading
  • Phantom Technologies, Inc. argues that its self-custody crypto wallet does not perform broker activities and thus should not require SEC registration under Section 15(a) of the Exchange Act.
  • The company advocates for the SEC to use its exemptive and/or no-action authority to create a regulatory framework for Token Shares tailored to decentralized finance (DeFi).
  • Phantom supports the Project Open initiative, which proposes a framework for the issuance and trading of Token Shares in compliance with existing securities laws.
Superstate Inc.

Response to Crypto Task Force: Digital Transfer Agent -- Moving Securities and Markets from Analog to Digital 		Custody, Public Offerings, Regulatory Sandbox, Safe Harbor, Security Status, Tokenization, Trading
  • The letter emphasizes that existing securities regulations are fully consistent with the tokenization and integration of blockchain technology within the securities markets.
  • It highlights the role of digital transfer agents in enabling the integration of registered and exempt securities by recording and tracking ownership within decentralized finance (DeFi).
  • The letter asserts that tokenized securities, supported by digital transfer agents, can improve market transparency, efficiency, and corporate governance while ensuring re
Orca Creative

Response to thCrypto Task Force’s Request for Comment: Regarding Project Open 		Custody, Regulatory Sandbox, Safe Harbor, Security Status, Tokenization, Trading
  • Orca Protocol is not classified as an exchange, broker, dealer, or clearing agency under the Exchange Act.
  • Orca Protocol operates autonomously and does not involve third-party custody, discretionary control, or intermediation.
  • Orca Protocol supports a principle-based regulatory framework that emphasizes transparency, autonomy, and user control.
Solana Policy Institute (by Lowenstein Sander LLP)

Public blockchain infrastructure for on-chain equities issuance and trading 		Custody, Public Offerings, Regulatory Sandbox, Safe Harbor, Security Status, Tokenization, Trading
  • Covered Blockchain Networks and Validators do not fall within the definitions of "clearing agencies," "exchanges," or "brokers" under the Exchange Act.
  • Validators on a Covered Blockchain Network do not act as intermediaries in the payment or delivery of securities and do not perform the intermediary functions characteristic of a CCP or clearing agency.
  • The on-chain infrastructure ensures that securities transactions are direct, transparent, and settled on a gross, peer-to-peer basis, with no centralized intermediation, custody, or netting.
Solana Policy Institute

Response to the Crypto Task Force’s Request for Comment: Regarding Project Open 		Custody, Public Offerings, Regulatory Sandbox, Safe Harbor, Security Status, Tokenization, Trading
  • The Solana Policy Institute argues that validators on the Solana network do not trigger registration requirements under securities laws.
  • Phantom Technologies Inc. asserts that non-custodial wallet software does not require broker-dealer registration.
  • Orca Creative claims that its AMM protocols do not function as securities intermediaries.
Nova Labs, Inc. dba Helium Mobile

RE: Request for Meeting – Decentralized Physical Infrastructure 		Security Status, Tokenization, Trading
  • The document requests the SEC to clarify that digital assets distributed as payment for services or as reward incentives within DePIN ecosystems do not constitute investment contracts under U.S. federal securities laws.
  • It urges the SEC to provide a clear framework for DePIN ecosystems that do not meet the Howey test, emphasizing that participants in these systems are not making an investment of money, nor are they investing in a common enterprise.
  • The document highlights the need for regulatory clarity to foster innovation and adoption of DePIN technology, which decentralizes physical infrastructure deployment, operation, and management.