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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.
Tokenized securities should be treated as traditional securities, with permissioned assets transferable across whitelisted wallets using smart contracts to enforce lawful transfers and track ownership changes.
Permissionless public blockchains should be allowed for the issuance, trading, and tracking of tokenized securities, with relevant market participants responsible for evaluating the security and soundness of the infrastructure.
Broker-dealers should be allowed to engage in a full array of activities, including custody, trading, and settlement of tokenized securities, without the need for segregation or special licensure.
Deloitte encourages the SEC to align its work with the President’s Working Group on Digital Asset Markets to propose a Federal regulatory framework for digital assets.
Deloitte emphasizes the need for a principles-based framework rooted in established laws and regulations to ensure predictability and adaptability as the digital asset market evolves.
Deloitte highlights the importance of coordination among regulators and standard setters to avoid regulatory fragmentation and reduce the risk of regulatory arbitrage.
Donna Redel, Ivo Entchev, Olta Andoni, and Stephen Rutenberg, Crypto Policy Working Group
Self-custody wallets are not considered custodians under U.S. securities law as users retain exclusive control over their private keys and assets.
Self-custody wallets do not meet the definition of an exchange under the Securities Exchange Act of 1934, as they do not match orders or facilitate securities trading among multiple participants.
Self-custody wallets are not brokers under the Exchange Act, as they do not solicit transactions, route orders, match trades, or hold funds in escrow on behalf of clients.
The document emphasizes the need for the SEC to differentiate between Bearer Digital Asset Securities (BDAS) and Tokenized Securities in its regulations, as the risks associated with BDAS do not apply to Tokenized Securities.
It argues that Tokenized Securities should be treated like traditional securities if they incorporate key safety attributes, such as maintaining a redundant secondary record on the blockchain and not being issued in bearer form.
The document urges the SEC to provide new interpretive guidance or no-action relief to allow broker-dealers to use issuers or transfer agents as control locations for Tokenized Securities, facilitating scalable solutions for clearing and custody.
The Blockchain Association (BA) advocates for an incremental, flexible approach to regulating crypto asset trading, emphasizing the need for the SEC to adapt existing rules to accommodate technological and market innovations.
BA suggests that the SEC should not impose requirements for investors to transact through intermediaries, and should leverage blockchain technology to enhance market efficiency and transparency.
BA recommends specific updates to SEC rules, including relief from certain timing requirements for trade confirmations, modifications to net capital rules for broker-dealers, and allowing blockchain-based books and records for regulatory purposes.
The CAQ supports increased regulatory clarity related to crypto assets and commends the establishment of the Crypto Task Force to advance this objective.
The CAQ encourages the SEC to coordinate with the Financial Accounting Standards Board (FASB) and Public Company Accounting Oversight Board (PCAOB) to provide additional accounting and auditing guidance for crypto assets.
The CAQ highlights the importance of stakeholder education on crypto assets for capital markets stakeholders, including investors and board members.
Custody, Public Offerings, RFI Responses, Security Status
PwC emphasizes the need for a framework that identifies how the characteristics of different crypto assets (e.g., stablecoins, non-fungible tokens) determine their security status.
PwC suggests leveraging existing public offering rules with necessary modifications for crypto assets that meet the definition of a security.
PwC recommends expanding custody-related regulations to provide adequate investor protection for crypto assets, even if they do not meet the definition of a security.
The memo highlights a potential conflict between the SEC's requirements for Covered Stablecoins and state financial authority requirements, particularly those of the NYDFS.
It suggests that the SEC staff contact state agencies to align on Reserve requirements for Covered Stablecoins to avoid violations of federal securities laws.
The memo recommends clarifying the SEC's Statement on Stablecoins to ensure issuers understand the need for potential registration under the Exchange Act, Investment Company Act, and Advisers Act.
Staking and Staking Services do not constitute securities transactions under federal securities laws, as they do not meet the criteria for investment contracts or notes.
The provision of Staking Services involves technical activities that secure blockchain networks and are compensated through protocol-defined rewards, not managerial efforts.
Regulatory clarity is requested to confirm that staking activities do not constitute the offer and sale of securities, which would help the industry flourish with U.S. participants.
Custody, Public Offerings, RFI Responses, Security Status, Tokenization, Trading
Broadridge supports the development of tailored disclosure requirements for crypto assets to enhance investor protection and suggests that disclosures should include both traditional financial information and crypto-specific details.
The letter emphasizes the importance of frequent updates on material information for crypto assets, with a recommendation for monthly updates or updates as changes occur.
Broadridge highlights the need for greater financial literacy education to help investors understand the unique attributes and risks associated with crypto assets.
