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
John A. Zecca, Nasdaq, Inc.

Re: Nasdaq’s Crypto ETP Response to the February 21, 2025 Statement by Commissioner Hester Peirce Entitled “There Must Be Some Way Out of Here” 		Crypto ETPs, Safe Harbor, Security Status, Trading
  • Nasdaq supports a balanced framework that enables innovative crypto ETP offerings while maintaining regulatory safeguards to protect investors and market integrity.
  • Nasdaq urges the SEC to modernize its approach and support the development of the digital asset ecosystem on national securities exchanges along more consistent lines.
  • Nasdaq recommends that the SEC work with national securities exchanges and market participants to establish clear and consistent standards for evaluating crypto ETP proposals.
Blockchain Association

Re: Written Input Regarding Trading-Related Topics 		Custody, RFI Responses, Security Status, Trading
  • 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.
Center for Audit Quality

Re: Commissioner Hester M. Peirce’s Statement There Must Be Some Way Out of Here 		Custody, Security Status, Trading
  • 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.
PricewaterhouseCoopers LLP

Letter to the Crypto Task Force 		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.
Jump Crypto

Re: Application of the Federal Securities Laws to the Digital Asset Market 		RFI Responses, Safe Harbor, Security Status, Trading
  • The SEC should clarify that most digital assets and digital-asset transactions are not investment contracts under current law.
  • The SEC should use its exemptive authority to make clear that digital assets and transactions without forward-looking contractual obligations are not subject to federal securities laws.
  • If a safe harbor is established, it should be based on the concept of "control" rather than ownership to determine the applicability of securities laws.
James Wigginton, Coalition for Cooperative Blockchain Organizations

Cooperatives - Ownership Model for Digital Networks (Orrick, KPMG, & Upside.Coop) 		Security Status
  • Turbulence in the crypto and blockchain markets over the past year has shed light on how web3 companies share ownership in digital assets, including through tokens.
  • Builders and investors should consider adding cooperatives to their ownership structures.
  • The SEC has consistently declined to classify cooperative memberships as securities, enabling cooperatives to distribute ownership to users quickly and easily, while also offering important protections to their members.
Stephen Keen

Stablecoins—Potential Conflicts Between the Commission Staff’s Interpretation 		Custody, Security Status, Trading
  • 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.
CCI's Proof of Stake Alliance (POSA)

Re: Law and Policy Considerations Relevant to Staking Services 		Custody, RFI Responses, Safe Harbor, Security Status, Trading
  • 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.
     
Charles V. Callan, Broadridge Financial Solutions

Subject: Comments on the SEC Crypto Task Force’s February 21, 2025 Request for Information (“RFI”) 		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.
Ronald Feiman, Carter Ledyard & Milburn LLP

StableCoins Are (Not Just Similar to) Money Market Funds 		Custody, Security Status, Trading
  • StableCoins must develop and utilize mechanisms to maintain a stable value relative to a reference asset, which may involve holding a fixed amount of the reference asset or maintaining an asset base that parallels the reference asset.
  • If a StableCoin platform's business involves investing or trading in securities, it may be required to register as an investment company under the Investment Company Act of 1940, unless it qualifies for an exemption.
  • The SEC has a regime for investment companies aimed at maintaining a stable value, such as money market funds, which includes diversification, transparency, and valuation policies.