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
Charles W. Mooney, Jr., University of Pennsylvania Carey Law School

Beyond Intermediation: A New (Fintech) Model For Securities Holding Infrastructures 		Custody, Security Status, Tokenization, Trading
  • The article presents a comprehensive analysis of the legal attributes and implications of intermediated securities holding infrastructures, highlighting the risks and costs imposed by these systems.
  • It proposes a new platform system (NPS) that would connect investor holdings directly to issuers, reducing intermediary risk and facilitating the shortening of custody chains across international borders.
  • The article discusses the potential for distributed ledger technology (DLT) to improve securities holding infrastructures by reducing intermediary risk and enhancing transparency.
     
Vanguard Global Holdings LLC

RE: Comment on Conditional and Time-Limited Exemptions for Blockchain Innovation – In Response to Acting Chair Mark T. Uyeda’s April 11, 2025 Remarks 		Public Offerings, Safe Harbor, Security Status, Tokenization, Trading
  • Proposal for a conditional exemption for Initial Coin Offerings (ICOs) to facilitate early-stage fundraising for blockchain projects.
  • Implementation of a mandatory basic registration system for entities operating under the exemption to ensure oversight and prevent misuse.
  • Establishment of a public-facing verification tool by the SEC to enhance transparency and investor protection.
     
Michael Guttentag, LMU Loyola Law School

RE: The Importance of Distinguishing Between Doctrinal and Functional Answers 		Public Offerings, Regulatory Sandbox, Security Status
  • The distinction between doctrinal and functional analysis is crucial for effective regulation of crypto assets.
  • Doctrinal analysis focuses on legal precedents and statutory interpretation, while functional analysis considers the practical effects of regulatory interventions.
  • Clear differentiation between doctrinal and functional answers can help in making sound policy choices for crypto asset regulation.
     
Metrika, Inc.

Re: Operational Risk Considerations for Digital Asset Innovation in Traditional Financial Markets 		Custody, Public Offerings, RFI Responses, Tokenization, Trading
  • Tokenization of traditional securities on blockchain protocols introduces new operational risks and challenges that need to be addressed to ensure robust investor protection and minimal disruption to capital formation.
  • The SEC should consider implementing specific digital asset custody requirements for investment advisers and broker-dealers, encompassing key management and risks inherent to blockchain networks.
  • Real-time risk management strategies are essential for investment advisers, broker-dealers, and custodians dealing with digital asset securities to promptly identify and respond to emerging threats
Grace H. Lin & Tris R. Sebesta, The George Washington University Law School

Change Is Calling: A Contemporary Commission To Confront Cryptic Crypto Conditions 		Custody, Public Offerings, Regulatory Sandbox, Security Status, Trading
  • The proposal suggests establishing a new agency, the Federal Digital Asset Commission (FDAC), to provide clear regulatory guidelines and oversight specifically tailored to digital assets.
  • FDAC will implement a tiered licensing structure for crypto-asset service providers (CASPs) and enforce compliance through audits, cybersecurity measures, and financial stability requirements.
  • The document emphasizes the importance of creating a digital asset classification framework to prevent prolonged disputes and ensure market regulation clarity.
DTI Foundation

Re: Public input following announcement of new crypto task force 		Crypto ETPs, Public Offerings, Security Status, Tokenization, Trading
  • The DTI Foundation emphasizes the importance of using the digital Token Identifier (DTI) for unambiguous identification of crypto assets within any future regulatory framework.
  • The DTI is recognized as a global ISO standard and is increasingly adopted for various regulatory reporting requirements in different jurisdictions.
  • The DTI Foundation offers a free service to download the entire DTI registry, ensuring transparency and accessibility for all stakeholders.
Tyler Gellasch, Healthy Markets Association

Re: Submission to the Securities and Exchange Commission Crypto Task Force Roundtable - Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading 		Custody, Security Status, Trading
  • The SEC should apply existing rules from equities and derivatives trading markets to digital assets to promote competition, efficiency, integrity, and fairness.
  • Digital asset managers should be subject to fiduciary duties, custody rules, operational resiliency, and standardized disclosures similar to those for registered investment advisers.
  • Brokers and market makers in digital assets should register with regulators, meet training and expertise requirements, and adhere to best execution and order handling obligations.
     
Andreessen Horowitz, a16z

Re: Comments on the SEC Crypto Task Force’s Questions Concerning the Custody of Crypto Assets 		Custody, RFI Responses, Security Status

  • The Commission should provide new guidance to facilitate custody arrangements for crypto assets, even if only as a temporary measure until it issues new rules.

  • The Commission should permit RIAs to self-custody security tokens and clarify that the self-custody of crypto assets by RIAs would not conflict with the Custody Rule or fiduciary duties.

  • Custodial requirements should clearly distinguish between different categories of crypto assets while ensuring that non-security crypto assets are custodied in a manner that is substantially as secure as crypto asset securities.
Adele Faure & Laura Brookover, OpenSea

Re: Securities Exchange and Broker Status of NFT Marketplaces 		Custody, Security Status, Trading

  • NFTs are not securities under the Exchange Act, primarily because they are collectibles or art purchased for consumption, novelty, or aesthetic value rather than for investment.

  • OpenSea does not qualify as an exchange because it does not bring together multiple sellers of the same asset and does not provide a trading facility or set rules for non-discretionary order interactions.

  • OpenSea is not a broker as it does not solicit investments, negotiate or execute transactions, custody customer assets, or provide financing arrangements, trade documentation, or asset valuations.
Chelsea Pizzola, Cumberland DRW

Re: Crypto Task Force Input: Secondary-Market Trading 		RFI Responses, Safe Harbor, Security Status, Tokenization, Trading

  • Cumberland believes that many secondary-market transactions in native crypto assets are not securities transactions, even if the crypto asset was initially offered and sold as part of an investment contract.

  • Cumberland supports adoption of Commissioner Peirce’s proposed safe harbor or similar relief to alleviate concerns for primary issuance and secondary-market trading of Natively Digital Securities.

  • Cumberland suggests that the SEC should consider providing interpretive or no-action relief from certain aspects of the tests for determining whether securities have a ready market, limited