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
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.
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.
     
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.
     
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.
     
Jacob Clayton, SAGINT

Letter to the Crypto Task Force 		Custody, Regulatory Sandbox, Safe Harbor, Tokenization, Trading
  • Clear Asset Classification: Define when tokenized RWAs constitute securities under the Howey Test.
  • Streamlined Registration: Recommend a blockchain-specific registration pathway, potentially a safe harbor.
  • Custody and Market Rules: Modernize custody rules to include tokenized assets and adapt broker-dealer regulations.
     
Gabriel Shapiro, MetaLeX

Token Safe Harbor Proposal 3.0 		Safe Harbor, Security Status, Tokenization, Trading
  • The proposal seeks to exempt qualifying transactions in decentralized autonomous tokens or utility tokens from the registration requirements and certain other formalities of the securities laws.
  • It clarifies that risk-capital-raising sales of tokens to investors remain investment contracts and must be either registered or exempt from registration.
  • The proposal revises provisions relating to decentralization tests to apply to smart contract systems and layers rather than just pure blockchain networks.
     
Daniel M. Gallagher, Robinhood Markets. Inc.

Letter to the Crypto Task Force 		Custody, Safe Harbor, Security Status, Trading
  • Robinhood advocates for the SEC to use its existing authority under Section 36 of the Securities Exchange Act of 1934 to create a provisional regulatory framework for digital assets.
  • The document criticizes the SEC's regulation by enforcement approach, highlighting the need for clear guidance and rulemaking to avoid inconsistent results and foster innovation.
  • Robinhood emphasizes the importance of establishing a tailored, transparent registration process for digital assets to provide clarity and stability in the market.
     
Andreesen Horowitz, a16z

Re: Recommendations Regarding a Safe Harbor for Certain Airdrops and Incentive-Based Rewards of Network Tokens 		Safe Harbor, Security Status, Tokenization, Trading
  • The proposal recommends clear criteria for excluding certain airdrops and incentive-based rewards of network tokens from federal securities laws.
  • It argues that Section 5 registration is unwarranted for airdrops and incentive-based rewards that do not pose the risks federal securities laws are intended to address.
  • The proposal emphasizes the need for robust transfer restrictions to prevent insiders from exploiting asymmetric information and capitalizing on token volatility.
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.
Joe Roets, Dragonchain

Dragonchain Feedback to Commissioner Hester M. Peirce article There Must Be Some Way Out of Here dated Feb. 21, 2025 		Regulatory Sandbox, Safe Harbor, Security Status
  • A proper regulatory taxonomy should distinguish between software licenses and utility tokens versus financial securities and investment vehicles.
  • Blockchain functions such as consensus mechanisms, smart contract execution, and decentralized identity management should not fall under securities regulations.
  • NFTs should not be presumed to be securities, as they are digital collectibles with use cases in gaming, identity, and authentication.