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
Antonio Lanotte, Global Blockchain Business Council

Tokenization Takes on Financial Services and Capital Markets 		Custody, Regulatory Sandbox, Security Status, Tokenization, Trading
  • The EU market in cryptoassets (MiCA) regulation introduces specific rules for stablecoins, requiring issuers to meet capital and governance requirements and comply with AML, custody, and operational rules.
  • The DLT pilot regime allows for the creation of DLT-based trading venues and settlement systems, providing temporary exemptions from certain EU financial rules to test innovations.
  • Luxembourg's Blockchain Law IV explicitly recognizes and regulates the use of DLT for issuing, registering, and transferring dematerialized securities, introducing a "control agent" to monitor and verify transactions in real time.
Interop Labs Inc.

Re: Responses to the SEC Crypto Task Force’s Questions 		Custody, RFI Responses, Safe Harbor, Security Status, Tokenization
  • Interop Labs urges the SEC to distinguish between centralized and decentralized interoperability networks and to issue guidance or a safe harbor exempting decentralized, non-custodial systems from intermediary registration requirements.
  • The document proposes principles for evaluating decentralization, including open-source protocols, public accessibility, permissionless operation, immutability, and distributed governance.
  • Interop Labs emphasizes that decentralized interoperability networks reduce systemic vulnerabilities and uphold investor protections through protocol-level safeguards.
The Digital Chamber

Investment Adviser Custody and Other Requirements 		Custody, Safe Harbor, Security Status, Trading
  • The SEC should confirm the scope of existing custody rules with respect to crypto assets, as many crypto assets do not fall within the definition of "securities" or "client funds" under the Advisers Act.
  • The SEC should expand the definition of "qualified custodian" to include state-chartered trust companies and other entities that meet substantially similar standards.
  • RIAs should be permitted to self-custody crypto asset securities when no qualified custodian is available, with appropriate safeguards and disclosures.
Matthew Comstock, Willkie Farr & Gallagher LLP, on behalf of The Digital Chamber

Broker-Dealer Custody and Other Requirements 		Custody, Security Status, Tokenization, Trading
  • The Digital Chamber (TDC) advocates for a technology-neutral, principles-based approach to broker-dealer custody of crypto assets, emphasizing exclusive control over private keys through secure key management practices.
  • TDC requests the SEC to amend Rule 15c3-3 to allow broker-dealers to establish possession or control of crypto asset securities using various approaches and technologies, including third-party vendors.
  • TDC urges the SEC to confirm that broker-dealers can use Section 3(a)(6) Banks as control locations for crypto asset securities and to amend Rule 15c3-3 to explicitly include crypto asset securities.
Anderson P.C.

Support for the SEC Crypto Task Force's Vision and Regulatory Modernization for Digital Assets 		Custody, RFI Responses, Safe Harbor, Security Status, Tokenization
  • Anderson P.C. supports an activity-based regulatory framework over asset-based classification, advocating for the bifurcation of "security" definitions under the '33 and '34 Acts to provide clearer compliance pathways for digital assets.
  • The letter urges the SEC to issue interpretive guidance affirming decentralized oracle networks (DONs) as legitimate and reliable price benchmarks under fair value accounting standards and SEC rules.
  • Anderson P.C. recommends a tailored disclosure framework for network tokens, emphasizing transparency about tokenomics, governance, security audits, contributor incentives, and decentralization milestones.
Securities Industry and Financial Markets Association (SIFMA)

Request for Comment on There Must Be Some Way Out of Here 		Custody, RFI Responses, Security Status, Tokenization
  • SIFMA recommends that the SEC adopt clear, consistent, and consensus-driven taxonomies and classification approaches for digital assets to provide greater clarity to market participants.
  • SIFMA urges the SEC to apply traditional regulatory principles around custody to digital assets, including the separation of financial activities, segregation of client assets, and ensuring proper control of assets.
  • SIFMA supports the SEC's efforts to provide guidance scoping-out non-securities digital assets and digital asset activities, emphasizing a technology-neutral approach.
     
Mysten Labs, Inc.

Mysten Labs’ Response to “There Must Be Some Way Out of Here”: The Paramount Importance of Utility to the Security Status of Digital Assets 		RFI Responses, Safe Harbor, Security Status, Tokenization, Trading
  • The utility and real-world use case of a digital asset should be a primary determining factor in whether the asset is deemed a "security" under U.S. federal securities laws.
  • Digital assets with utility and real-world use cases are more appropriately regulated by the Commodity Futures Trading Commission (CFTC) rather than the Securities and Exchange Commission (SEC).
  • The regulatory approach should avoid excessively complicated, multi-part legal tests and instead focus on practical, usable, and reasonable legal standards.
The Digital Chamber

Re: CTF Written Input - The Digital Chamber 		Crypto ETPs, Custody, RFI Responses, Security Status, Trading
  • The Commission should adopt clear, evidence-based standards for reviewing crypto-asset based ETPs, focusing on the size and liquidity of the underlying spot market rather than the existence of a surveillance-sharing agreement (SSA) or a regulated market.
  • Market capitalization and the number of active spot markets should be prioritized as the most significant factors in evaluating crypto assets for ETP listing.
  • The historical track records of ETFs registered under the Investment Company Act that obtain exposure to the same assets as a proposed ETP should be highly instructive to the Commission.
     
Ravi Srivastava, Chief Technology Officer, Akemona, Inc.

Subject: Recommendations for Enhancing Regulation Crowdfunding (Reg CF) Through Blockchain Technology 		Custody, Tokenization, Trading
  • Enable secondary trading of tokenized Reg CF securities via public blockchains to enhance liquidity and reduce counterparty risk.
  • Allow CEO-certified financial statements for raises up to $500,000 to lower capital-raising costs for startups.
  • Permit smart contract-based escrow in place of qualified custodians for raises up to $1 million to reduce costs and improve efficiency.
Unit 410, LLC

Request for Regulatory Guidance – Qualified Self-Custody 		Custody, RFI Responses, Safe Harbor, Security Status
  • Proposes a Qualified Self-Custodian (QSC) framework for Registered Investment Advisers (RIAs) to self-custody digital assets when traditional Qualified Custodian (QC) options are unavailable.
  • Emphasizes the need for RIAs to document their fiduciary judgment and implement safeguarding principles to protect investors while self-custodying digital assets.
  • Requests interim regulatory guidance and potential rulemaking to address the regulatory gap and facilitate secure, legal, and practical self-custody solutions for digital assets.