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
Kevin Jacobs, Phantom Technologies, Inc.

Response to the Crypto Task Force’s Request for Comment: Regarding Project Open 		Custody, Security Status, Tokenization, Trading
  • Phantom Technologies, Inc. argues that its self-custody crypto wallet does not perform broker activities and thus should not require SEC registration under Section 15(a) of the Exchange Act.
  • The company advocates for the SEC to use its exemptive and/or no-action authority to create a regulatory framework for Token Shares tailored to decentralized finance (DeFi).
  • Phantom supports the Project Open initiative, which proposes a framework for the issuance and trading of Token Shares in compliance with existing securities laws.
Superstate Inc.

Response to Crypto Task Force: Digital Transfer Agent -- Moving Securities and Markets from Analog to Digital 		Custody, Public Offerings, Regulatory Sandbox, Safe Harbor, Security Status, Tokenization, Trading
  • The letter emphasizes that existing securities regulations are fully consistent with the tokenization and integration of blockchain technology within the securities markets.
  • It highlights the role of digital transfer agents in enabling the integration of registered and exempt securities by recording and tracking ownership within decentralized finance (DeFi).
  • The letter asserts that tokenized securities, supported by digital transfer agents, can improve market transparency, efficiency, and corporate governance while ensuring re
Orca Creative

Response to thCrypto Task Force’s Request for Comment: Regarding Project Open 		Custody, Regulatory Sandbox, Safe Harbor, Security Status, Tokenization, Trading
  • Orca Protocol is not classified as an exchange, broker, dealer, or clearing agency under the Exchange Act.
  • Orca Protocol operates autonomously and does not involve third-party custody, discretionary control, or intermediation.
  • Orca Protocol supports a principle-based regulatory framework that emphasizes transparency, autonomy, and user control.
Solana Policy Institute (by Lowenstein Sander LLP)

Public blockchain infrastructure for on-chain equities issuance and trading 		Custody, Public Offerings, Regulatory Sandbox, Safe Harbor, Security Status, Tokenization, Trading
  • Covered Blockchain Networks and Validators do not fall within the definitions of "clearing agencies," "exchanges," or "brokers" under the Exchange Act.
  • Validators on a Covered Blockchain Network do not act as intermediaries in the payment or delivery of securities and do not perform the intermediary functions characteristic of a CCP or clearing agency.
  • The on-chain infrastructure ensures that securities transactions are direct, transparent, and settled on a gross, peer-to-peer basis, with no centralized intermediation, custody, or netting.
Solana Policy Institute

Response to the Crypto Task Force’s Request for Comment: Regarding Project Open 		Custody, Public Offerings, Regulatory Sandbox, Safe Harbor, Security Status, Tokenization, Trading
  • The Solana Policy Institute argues that validators on the Solana network do not trigger registration requirements under securities laws.
  • Phantom Technologies Inc. asserts that non-custodial wallet software does not require broker-dealer registration.
  • Orca Creative claims that its AMM protocols do not function as securities intermediaries.
Nova Labs, Inc. dba Helium Mobile

RE: Request for Meeting – Decentralized Physical Infrastructure 		Security Status, Tokenization, Trading
  • The document requests the SEC to clarify that digital assets distributed as payment for services or as reward incentives within DePIN ecosystems do not constitute investment contracts under U.S. federal securities laws.
  • It urges the SEC to provide a clear framework for DePIN ecosystems that do not meet the Howey test, emphasizing that participants in these systems are not making an investment of money, nor are they investing in a common enterprise.
  • The document highlights the need for regulatory clarity to foster innovation and adoption of DePIN technology, which decentralizes physical infrastructure deployment, operation, and management.
Crowdfunding Professional Association

Comment Letter Re: Public Offerings of Digital Assets (Questions 7–9) Submitted in Response to Commissioner Peirce’s Statement “There Must Be Some Way Out of Here” 		Public Offerings, RFI Responses, Security Status, Tokenization, Trading
  • The Commission should prioritize disclosure-based solutions over creating new regulatory silos for digital assets, specifically through tailored guidance or interpretive relief under Reg CF and Reg A.
  • Tailored disclosures are essential for meaningful investor protection in crypto asset offerings, and should be required across all exemptions and registrations, including protocol-level details, token characteristics, governance, and liquidity.
  • Regulation A remains underutilized by token issuers, and practical barriers such as uncertainty around eligible crypto assets, conflicting accounting requirements, and delays in qualification timelines need to be addressed.
Securities Industry and Financial Markets Association (SIFMA)

RE: Request for Comment on There Must Be Some Way Out of Here 		Custody, Public Offerings, RFI Responses, Security Status, Tokenization, Trading
  • Issuer disclosures under the 1933 and 1934 Acts should be extended to new categories of securities transactions, including digital assets.
  • The separation of functions and limits on vertical integration must be maintained to ensure investor protection and fair and orderly markets.
  • Direct retail issuance of SEC-regulated products should not be permitted.
Better Markets

Feedback to the Crypto Task Force 		Security Status, Tokenization, Trading
  • The Crypto Task Force should prioritize notice-and-comment rulemaking over guidance documents to ensure public participation and agency accountability.
  • The use of guidance documents by the Crypto Task Force undermines the legitimacy of its actions and avoids necessary procedural rigor.
  • The Crypto Task Force's statement on meme coins, categorizing them as collectibles, highlights the risks of adopting extreme positions without public input.
Ethena Labs, S.A.

Re: Response To Crypto Task Force Request For Comment 		Custody, Regulatory Sandbox, RFI Responses, Security Status, Tokenization
  • Ethena Labs argues that synthetic dollars, like other stable value tokens, should not be regulated as securities, as they are designed for transactional and consumptive purposes rather than speculative or investment-oriented uses.
  • The submission highlights that the SEC's Statement on Stablecoins does not apply to synthetic dollars like USDe, which are backed by cryptocurrencies and delta-neutral hedging strategies rather than fiat currencies.
  • Ethena Labs recommends that the SEC provide clear guidance recognizing that stable value tokens, including synthetic dollars, are not securities and should be regulated under a consumer protection regime.