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
World Federation of Exchanges

Demystifying Tokenisation: Embracing the Future 		Custody, Security Status, Tokenization, Trading
  • Tokenised traditional assets are acknowledged in some jurisdictions to offer the same ownership rights as their traditional counterparts and are regulated accordingly.
  • The Basel Committee on Banking Standards (BCBS) has proposed harsh capital treatments for all tokenised assets due to the evolving nature and unforeseen risks of distributed ledger technology (DLT).
  • Tokenisation requires substantial upfront investment from all market participants without clear gains in highly efficient markets like equity.
     
World Federation of Exchanges

Promoting Sound Marketplaces – DeFi/CeFi, Crypto Platforms & Exchanges 		Crypto ETPs, Custody, Security Status, Tokenization, Trading
  • Exchanges and Crypto-Asset Trading Platforms (CTPs) should adhere to the principle of "same activity, same risks, same rules" to ensure market integrity and investor protection.
  • CTPs should disclose their regulatory status and not describe themselves as "exchanges" until they meet the high standards expected of regulated exchanges.
  • Governments and regulators should require CTPs to segregate market infrastructure functions, hold sufficient financial resources, and have appropriate governance and management 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.
     
Josh Lawler, Zubler Lawler

There Must Be Some Kinda Way Out of Here Part II -- Security Status 		Security Status, Tokenization, Trading
  • The Commission should identify categories of crypto digital assets and transactions that do not fall within its authority, considering the economic reality of what is being offered or sold.
  • Stablecoins, wrapped tokens, and NFTs should be analyzed based on their use case and the context of their sale to determine if they require the protections applicable to capital raising vehicles.
  • Disclosure requirements for digital assets should be driven by the token use case, including information about total and circulating supply, token utility demand statistics, project roadmap, team, and competitive landscape.
     
Anthony Guerino

Proposal to the Crypto Task Force: Positioning for the Tokenized Economy 		Crypto Lending, Custody, Public Offerings, Regulatory Sandbox, Security Status, Tokenization, Trading
  • Advocate for regulatory clarity on XRP, tokenized assets, and stablecoin-AMM integrations.
  • Encourage liquidity infrastructure development to support institutional tokenization initiatives.
  • Monitor BIS and IMF-backed digital currency pilots for integration opportunities.
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.
     
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.
Luc Falempin, Tokeny

SEC Crypto Task Force Input Letter from Tokeny 		Custody, Security Status, Tokenization, Trading
  • Clear regulations should indicate that the same securities laws apply regardless of the technology used, ensuring compliance through permissioned token standards like ERC-3643.
  • Tokens should be recognized as verifiable proofs of ownership when implemented with the right compliance framework, linking ownership to verified identities.
  • Avoid adding extra custody requirements for digital securities, as identity-based permissioned tokens ensure ownership is tied to an investor’s on-chain identity, not individual wallets.