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
Lido Labs Foundation

Re: Response to RFI of Crypto Task Force 		RFI Responses, Safe Harbor, Security Status
  • Governance tokens provide essential utility for decentralized blockchain networks and should not be classified as securities.
  • Liquid staking tokens (LSTs) are akin to warehouse receipts for commodities and do not implicate federal securities laws.
  • The SEC should provide legal clarity on the status of LSTs to ensure market certainty.
Bruce Tupper, CoinRegTech

RE: SEC Crypto 2.0 Formation of New Crypto Task Force 		Custody, RFI Responses, Security Status, Tokenization, Trading
  • The SEC should address investor protection and market structure issues involving digital asset securities facilitated by off-chain transactions on trading platforms.
  • The SEC and CFTC should jointly authorize and regulate a digital asset repository of transactions (DART) to record both on-chain and off-chain transactions and associated customer ownership.
  • The SEC should revise the Exchange Act rules to require timely reporting of all transactions deemed digital asset securities to enhance market oversight.
Ripple

Letter to the Crypto Task Force 		Custody, Regulatory Sandbox, RFI Responses, Safe Harbor, Security Status, Tokenization, Trading
  • The SEC lacks authority over most digital assets and transactions involving them, as it can only regulate "securities" and transactions involving securities as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934.
  • The application of the Howey test under the prior administration was distorted, leading to market disruption and driving innovation outside the United States.
  • The SEC should confirm that staking and yield-generating arrangements dependent on the programmatic functioning of a public, permissionless network that do not involve a definable issuer or counterparty making investment commitments are not considered securities.
Lewis Cohen, Cahill Gordon & Reindel LLP

What We Talk About When We Talk About (Tokens) 		Public Offerings, RFI Responses, Safe Harbor, Security Status
  • The absence of a clear regulatory perimeter for crypto asset activity in the U.S. has resulted in market structure distortions and challenges for price discovery in the crypto asset sector.
  • Fundraising transactions involving crypto assets intended to develop, improve, or promote a blockchain system must be registered with the Commission or exempt from registration.
  • The Commission should consider adopting safe harbor guidance for subsequent sales of crypto assets by project teams or insiders, subject to certain conditions.
Brandon Ferrick, Douro Labs LLC

Re: Responses to Commissioner Peirce’s “There Must Be Some Way Out of Here” 		Custody, RFI Responses, Safe Harbor, Security Status, Tokenization, Trading
  • The SEC should issue interpretive guidance that decentralized oracle networks (DONs) are acceptable benchmark tools for crypto asset prices.
  • Investment funds holding digital assets could use DON-derived prices to supplement NAV calculations.
  • Broker-dealers can incorporate DON data into risk models and regulatory calculations.
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.
     
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.
     
Andreesen Horowitz, a16z

Re: Comments on the SEC Crypto Task Force’s Questions Concerning the Security Status of Crypto Assets 		Custody, RFI Responses, Safe Harbor, Security Status, Tokenization
  • The document proposes a control-based decentralization framework to limit the application of federal securities laws, suggesting that when control is eliminated, the application of securities laws should be limited.
  • It emphasizes the need for a clear regulatory taxonomy that separates crypto asset classification from transaction analysis, aiming to reduce regulatory uncertainty and enforcement-driven policymaking.
  • The response advocates for the establishment of compliant pathways for network tokens, including the creation of a safe harbor for certain airdrops and incentive-based rewards.