Working With,
Not Against, The SEC
How our members answered the Crypto Task Force’s 48 questions for the digital asset industry and delivered actionable policy guidance to the SEC.
What Happened?
On February 21, 2025, SEC Commissioner Hester Peirce published “There Must Be Some Way Out of Here,” a statement requesting information from industry participants on a wide range of digital asset issues. The goal was to support the Crypto Task Force as they consider solutions to the issues presented. With the leadership and support of 9 extraordinary law firms, alongside over 75 deeply engaged members, we launched and completed 13 separate workstreams to fully address all 48 questions raised in the statement.
WHY IT MATTERS
Our members stepped up to support the SEC’s call for clarity. Through thoughtful, coordinated engagement, we’re helping define a workable future for digital assets.
Aligns Directly with Our 2025 SEC Policy Priorities
Our responses are informed by our priorities addressing critical regulatory issues and providing workable solutions for challenges faced by digital asset market participants and intermediaries.
Tackles Pressing Issues for Blockchain and Digital Assets
Including tokenization of securities, trading, custody, the need for a safe harbor, proposed public offering disclosure, DeFi oversight, and innovation sandboxes.
Paves a Collaborative Path to Regulatory Clarity
Rather than resist regulation, we offered the SEC real-world insights from industry leaders, building a constructive model for future engagement between innovators and regulators.
KEY OUTCOMES
Top Law Firms Shaped and Led Recommendations
Industry Experts Provided Hundreds of Hours of Input
Solutions Delivered to the SEC
WORKSTREAMS 1-7
1 – Security status
Status of digital assets as securities, investment contract/Howey test issues, technology function issues, status of liquid staking tokens.
2 – Safe Harbor Registration
Should the SEC consider a version of Commission Peirce’s 2020/2021 Token Safe Harbor? Additional questions on potential disclosure requirements, range of decentralization considerations, and retroactive application.
3 – Custody
How should the SEC approach crypto asset custody for broker dealers, investment advisors, and investment companies? Treatment of permissioned versus permissionless blockchain assets. Issues for auditing and accounting for crypto asset investments and transactions.
4 – Investment Advisor Custody and Other Requirements
Issues for RIAs under the 40 Act as it relates to crypto assets that are securities. Issues around RIAs staking, trading, and voting crypto assets outside of a qualified custodian. Hot and cold storage issues.
5 – Crypto Lending
How should the SEC approach crypto lending without stifling potential opportunities? Crypto lending programs vs traditional securities lending programs.
6 – Crypto Exchange Traded Products (“ETPs”)
Questions related to SEC’s prior requirement for exchanges to have in place a comprehensive surveillance sharing agreement with a regulated market of significant size as a condition to crypto ETF approval, potential spot market alternative approach.
7 – Tokenized Securities
Range of questions on how the SEC should approach and consider tokenized securities – transfer agent issues, settlement cycle, NMS requirements, 40 Act issues, etc.
WORKSTREAMS 8-13
8 – Scoping Out
Status of stablecoins, wrapped tokens and NFTs as outside authority of the SEC. Issue of whether the SEC should establish a workable taxonomy.
9 – Public Offerings
Should the SEC develop tailored disclosure requirements for offerings or classes of specific categories of crypto assets? What disclosure is important to investors and how should it be disclosed? How should Reg A be revised to make it more useful for crypto asset offerings?
10 – Trading
Should the SEC create a new entity registration for platforms that trade crypto asset securities? Should existing national securities exchange and ATS requirements be adapted for this purpose? Rulebook updates? Range of other questions related to best execution, order book data, MEV.
11 – Broker Dealer Custody & Other Financial Responsibility Requirements
Should the SEC modify or withdraw the SPBD statement? Issues related to net capital rules and record keeping obligations in the context of crypto assets.
12 – Investment Company Custody
Issues facing registered investment companies related to section 17(f) related to investments in crypto assets. Issues related to staking, self-custody, and, other types of crypto asset specific transactions.
13 – Sandbox and Related International Issues
Should the SEC consider a cross-border Sandbox similar to that previously proposed by Commissioner Peirce? What types of products and services would firms like to test? Would a Sandbox help foster innovation?
Tools and Resources for Policymakers
We extend our deepest gratitude to the lawyers who contributed time, insight, and leadership throughout this process.
Jim Audette
Chapman and Cutler LLP
6 – Crypto Exchange Traded Products (“ETPs”)
12 – Investment Company Custody
Melissa Bender
Ropes & Gray LLP
4 – Investment Advisor Custody and Other Requirements
Glen Chen
Ropes & Gray LLP
4 – Investment Advisor Custody and Other Requirements
Matthew Comstock
Willkie Farr & Gallagher LLP
3 – Custody
11 – Broker Dealer Custody & Other Financial Responsibility Requirements
Dan Engoren
Sidley Austin LLP
1 – Security Status
9 – Public Offerings
Coy Garrison
Steptoe
2 – Safe Harbor Registration
Steven Gatti
Clifford Chance
7 – Tokenized Securities
Arthur S. Greenspan
Perkins Coie
10 – Trading
Sonia Gupta Barros
Sidley Austin LLP
9 – Public Offerings
Andrew Hinkes
Winston & Strawn LLP
5 – Crypto Lending
Charlie Humphreville
Ropes & Gray LLP
4 – Investment Advisor Custody and Other Requirements
Daniel McAvoy
Polsinelli
8 – Scoping Out
Lowell D. Ness
Perkins Coie
10 – Trading
Jesse Overall
Clifford Chance
7 – Tokenized Securities
Kim Prior
Winston & Strawn LLP
13 – Sandbox and Related International Issues
Stephen Rutenberg
Polsinelli
8 – Scoping Out
Jonathan Schmalfeld
Polsinelli
8 – Scoping Out
Daniel Stabile
Winston & Strawn LLP
13 – Sandbox and Related International Issues
Lilya Tessler
Sidley Austin LLP
1 – Security Status
9 – Public Offerings
James Q. Walker
Perkins Coie
10 – Trading
Morrison Warren
Chapman and Cutler LLP
6 – Crypto Exchange Traded Products (“ETPs”)
12 – Investment Company Custody
BLOCKCHAIN FOR A
BETTER TOMORROW
At The Digital Chamber, we firmly believe in the power of collective action to drive progress. Join us as we break down barriers, enabling a new era of inclusion, digital freedom, and opportunity.