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
Crowdfunding Professional Association

Comment Letter Re: Public Offerings of Digital Assets (Questions 7–9) Submitted in Response to Commissioner Peirce’s Statement “There Must Be Some Way Out of Here” 		Public Offerings, RFI Responses, Security Status, Tokenization, Trading
  • The Commission should prioritize disclosure-based solutions over creating new regulatory silos for digital assets, specifically through tailored guidance or interpretive relief under Reg CF and Reg A.
  • Tailored disclosures are essential for meaningful investor protection in crypto asset offerings, and should be required across all exemptions and registrations, including protocol-level details, token characteristics, governance, and liquidity.
  • Regulation A remains underutilized by token issuers, and practical barriers such as uncertainty around eligible crypto assets, conflicting accounting requirements, and delays in qualification timelines need to be addressed.
Securities Industry and Financial Markets Association (SIFMA)

RE: Request for Comment on There Must Be Some Way Out of Here 		Custody, Public Offerings, RFI Responses, Security Status, Tokenization, Trading
  • Issuer disclosures under the 1933 and 1934 Acts should be extended to new categories of securities transactions, including digital assets.
  • The separation of functions and limits on vertical integration must be maintained to ensure investor protection and fair and orderly markets.
  • Direct retail issuance of SEC-regulated products should not be permitted.
Better Markets

Feedback to the Crypto Task Force 		Security Status, Tokenization, Trading
  • The Crypto Task Force should prioritize notice-and-comment rulemaking over guidance documents to ensure public participation and agency accountability.
  • The use of guidance documents by the Crypto Task Force undermines the legitimacy of its actions and avoids necessary procedural rigor.
  • The Crypto Task Force's statement on meme coins, categorizing them as collectibles, highlights the risks of adopting extreme positions without public input.
Ethena Labs, S.A.

Re: Response To Crypto Task Force Request For Comment 		Custody, Regulatory Sandbox, RFI Responses, Security Status, Tokenization
  • Ethena Labs argues that synthetic dollars, like other stable value tokens, should not be regulated as securities, as they are designed for transactional and consumptive purposes rather than speculative or investment-oriented uses.
  • The submission highlights that the SEC's Statement on Stablecoins does not apply to synthetic dollars like USDe, which are backed by cryptocurrencies and delta-neutral hedging strategies rather than fiat currencies.
  • Ethena Labs recommends that the SEC provide clear guidance recognizing that stable value tokens, including synthetic dollars, are not securities and should be regulated under a consumer protection regime.
Cindy Hart, EROS LLC

Written Input over Crypto Activity Roundtable 		Custody, Security Status, Trading
  • The letter recommends the SEC issue interpretative guidance related to corporate governance practices, particularly for investor and consumer protection.
  • It highlights the need for guidance that aligns governance practices with the nature and risk profile of activities conducted by organizations.
  • The letter suggests that such guidance could reference leading industry standards and frameworks to enhance accountability and provide a legal basis for recourse in cases of governance failures.
FusionPay

Re: FusionPay Tokenomic Whitepaper 		Custody, Security Status, Tokenization, Trading
  • FusionPay's token system is designed to avoid securities classification under frameworks like MAS (Singapore).
  • The protocol is non-custodial, meaning no wallet keys or assets are ever held by the protocol.
  • FTE token holders have governance rights, including voting on protocol upgrades, treasury allocations, and incentive programs.
Consensys Software Inc.

Re: Staking Services Revenue Recognition Accounting Guidance 		Custody, Regulatory Sandbox, Security Status, Trading
  • Current application of ASC 606 results in misleading gross revenue recognition for staking service providers, treating them as principals rather than agents.
  • Consensys requests SEC guidance to recognize only service fees as revenue, reflecting the economic reality of staking services.
  • Misleading gross revenue treatment impacts financial transparency, investor understanding, and regulatory compliance for staking service providers.
John A. Zecca, Nasdaq, Inc.

Digital Assets Sandbox Comment 		Custody, Regulatory Sandbox, Tokenization, Trading
  • Sandboxes should have clear objectives, focused scope, transparent procedures, prudent guardrails, and appropriately timed durations and exit procedures.
  • The existing market structure and regulatory regime, including Regulation NMS, can accommodate many elements needed to tokenize securities, making a sandbox unnecessary for this purpose.
  • Sandbox exemptions may be useful for digital assets that exhibit some but not all attributes of securities and to address friction points in the current system for trading tokenized securities
Van Eck Associates Corporation

Letter to the Crypto Task Force 		Crypto ETPs, Custody, Public Offerings, Security Status
  • The letter addresses the regulatory framework for digital assets and emphasizes the need for clear guidelines to ensure compliance.
  • It highlights the importance of investor protection and the role of regulatory bodies in overseeing digital asset transactions.
  • The letter calls for collaboration between industry stakeholders and regulators to develop a robust and adaptable regulatory environment.
Alan Konevsky, tZERO Group, Inc.

Re: Crypto Task Force Meeting with tZERO Group, Inc. – Follow-Up Notes 		Custody, Safe Harbor, Security Status, Trading
  • Establish permanent guidance and rules for broker-dealer self-custody of digital asset securities, building on the SPBD Statement.
  • Clarify the manner in which broker-dealers can retail, custody, and quote non-security crypto assets on alternative trading systems.
  • Issue new guidance to clarify the definition of a digital asset security and its compliance requirements.