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
Sara Hanks, CrowdCheck Law LLP

Letter to the Crypto Task Force 		Public Offerings, RFI Responses, Security Status, Tokenization, Trading
  • The document discusses the need for clear guidance on whether crypto assets fall within the definition of "security" and how they should be treated under GAAP.
  • It emphasizes that Regulation A is suitable for public offerings of tokenized traditional securities or novel crypto assets, without significant rulemaking.
  • The document highlights the importance of preemption of state laws for secondary trading of securities issued under Regulation A.
Paul Grewal, Coinbase

Re: There Must Be Some Way Out of Here: Recommendations on the Regulation of Digital Securities Markets 		Crypto ETPs, Custody, RFI Responses, Safe Harbor, Security Status, Tokenization, Trading
  • Clarification that digital assets not conveying rights in a business enterprise are digital commodities, not securities.
  • Recognition of self-custody and autonomy benefits, allowing investors to hold and control their assets without intermediaries.
  • Proposal for a safe harbor for network and protocol tokens sold through investment contracts, with tailored disclosure requirements.
     
World Federation of Exchanges

Demystifying Tokenisation: Embracing the Future 		Custody, Security Status, Tokenization, Trading
  • Tokenised traditional assets are acknowledged in some jurisdictions to offer the same ownership rights as their traditional counterparts and are regulated accordingly.
  • The Basel Committee on Banking Standards (BCBS) has proposed harsh capital treatments for all tokenised assets due to the evolving nature and unforeseen risks of distributed ledger technology (DLT).
  • Tokenisation requires substantial upfront investment from all market participants without clear gains in highly efficient markets like equity.
     
World Federation of Exchanges

Crypto-Asset Custody: A Blueprint for Regulatory and Operational Excellence 		Custody
  • The document emphasizes the need for clear regulatory frameworks for crypto-asset custody to protect investors and ensure market integrity.
  • It highlights the importance of segregating client assets to ensure they are protected in the event of a company's bankruptcy.
  • The document discusses the necessity of addressing cyber risks through mature cybersecurity programs and thoughtful technology architecture decisions.
     
World Federation of Exchanges

Promoting Sound Marketplaces – DeFi/CeFi, Crypto Platforms & Exchanges 		Crypto ETPs, Custody, Security Status, Tokenization, Trading
  • Exchanges and Crypto-Asset Trading Platforms (CTPs) should adhere to the principle of "same activity, same risks, same rules" to ensure market integrity and investor protection.
  • CTPs should disclose their regulatory status and not describe themselves as "exchanges" until they meet the high standards expected of regulated exchanges.
  • Governments and regulators should require CTPs to segregate market infrastructure functions, hold sufficient financial resources, and have appropriate governance and management requirements.
     
Angela Dunn, Nasdaq, Inc.

Re: SR-Phlx-2025-08, Nasdaq Bitcoin Index Options 		Crypto ETPs, RFI Responses, Security Status, Trading
  • Phlx proposes to list and trade Nasdaq Bitcoin Index Options as a foreign currency option under Section 3(a)(10) of the Securities Exchange Act of 1934.
  • The Crypto Task Force is seeking comment on whether certain crypto assets fall within any category of financial instruments, other than investment contracts, listed in the definition of "security" in federal securities laws.
  • Bitcoin is officially recognized as legal tender in El Salvador, alongside the U.S. dollar, and is considered a foreign currency under Section 3(a)(10) of the Act.
     
Lee Reiners, Duke University

Prepared Statement for SEC’s Crypto Task Force March 21, 2025 Roundtable titled “How We Got Here and How We Get Out – Defining Security Status” and Responses to “Security Status” Questions in SEC Commissioner Hester Peirce’s February 21, 2025 Statement... 		Custody, Public Offerings, RFI Responses, Safe Harbor, Security Status, Tokenization, Trading
  • The Howey test has been consistently applied to cryptocurrency cases, reaffirming that digital tokens, when offered and sold under investment schemes, are investment contracts subject to federal securities laws.
  • Federal courts have repeatedly confirmed the SEC’s jurisdiction in numerous crypto-related enforcement actions, with the SEC winning or settling the vast majority of over 200 cases.
  • The SEC’s shift in enforcement strategy in 2023, targeting crypto exchanges rather than individual token issuers, has been affirmed by courts, reinforcing the applicability of Howey to these platforms.
     
Josh Lawler, Zubler Lawler

There Must Be Some Kinda Way Out of Here Part II -- Security Status 		Security Status, Tokenization, Trading
  • The Commission should identify categories of crypto digital assets and transactions that do not fall within its authority, considering the economic reality of what is being offered or sold.
  • Stablecoins, wrapped tokens, and NFTs should be analyzed based on their use case and the context of their sale to determine if they require the protections applicable to capital raising vehicles.
  • Disclosure requirements for digital assets should be driven by the token use case, including information about total and circulating supply, token utility demand statistics, project roadmap, team, and competitive landscape.
     
Chelsea Pizzola, Cumberland DRW

Re: Crypto Task Force Input: Security Status and Safe Harbor from Registration 		Safe Harbor, Security Status, Trading
  • Cumberland DRW LLC supports a safe harbor provision, provisionally named Rule 195, to address the complexities of applying the Howey test to cryptoassets.
  • Secondary-market cryptoasset transactions generally do not involve investment contracts, as they do not result in pooling of funds in a common enterprise.
  • Transactions in the native token of a decentralized network should not be viewed as securities transactions.
     
Anthony Guerino

Proposal to the Crypto Task Force: Positioning for the Tokenized Economy 		Crypto Lending, Custody, Public Offerings, Regulatory Sandbox, Security Status, Tokenization, Trading
  • Advocate for regulatory clarity on XRP, tokenized assets, and stablecoin-AMM integrations.
  • Encourage liquidity infrastructure development to support institutional tokenization initiatives.
  • Monitor BIS and IMF-backed digital currency pilots for integration opportunities.