Former SEC Attorney Urges Narrower Test for Crypto Securities, Proposes 'Digital Value' Category
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SEC Proposes Narrowing of Rule 15c2-11; Seeks Views on Crypto
The SEC has proposed limiting the reach of Rule 15c2-11 to equity instruments, launched a 60-day comment window, and asked whether certain tokenized assets should be classified as equities. The move narrows prior interpretations, sits alongside agency working concepts for staged "innovation" pilots and taxonomy work, and creates an immediate operational decision point for broker‑dealers, custodians and token issuers.
SEC leaders at ETHDenver call for clearer rules for tokenized securities
Senior SEC officials told ETHDenver attendees they support clearer, staged frameworks for tokenized securities — including pilots and targeted rulemaking — and warned that market volatility and CFTC staffing gaps could slow any legislative jurisdictional shifts. Industry participants pushed for harmonized, checklist-style tests and for operational standards so tokenized products can interoperate with existing custody, clearing and disclosure regimes.
SEC Defines Crypto Asset Classes, Signals Imminent Rulemaking
The SEC and CFTC released a joint interpretive taxonomy that narrows which tokens will typically fall under U.S. securities law and signaled an accelerated rulemaking path — including a large, forthcoming proposal — while also advancing supervised pilot concepts and a 60‑day comment window on parallel market‑structure tweaks. The guidance combines a four‑bucket functional classification with operational distinctions (issuer‑originated vs third‑party tokens), meaning firms must rapidly reassess token economics, custody models, and listing decisions amid lingering legislative and interagency timing risks.
Wall Street Banks Urge SEC to Apply Traditional Rules to Blockchain-Based Securities
Senior figures from major financial firms told the SEC that moving securities onto distributed ledgers changes operational mechanics but not the underlying legal character, urging that tokenized instruments be governed by existing securities law rather than broad blanket exemptions. The conversation was situated amid wider policy debates over graded token classifications, interagency coordination and pending congressional language, underscoring industry preference for formal rulemaking over ad‑hoc relief.
Federal Reserve Proposes Treating Crypto as Its Own Risk Class for Derivatives Margins
A Federal Reserve staff paper recommends creating a separate asset-class treatment for cryptocurrencies when calculating initial margin on uncleared derivatives, arguing their price behavior differs substantially from traditional categories. The proposal arrives amid broader Fed work on crypto access and market structure, underscoring the need for interagency and market‑infrastructure alignment to make bespoke margining effective.
Fidelity Presses SEC for Clear Rules Letting Broker-Dealers Trade and Custody Crypto on ATS
Fidelity urged the SEC to create a clear regulatory path for broker‑dealers to custody, list and trade tokenized securities on alternative trading systems, arguing rules must reflect distinct token structures and reconcile on‑chain plumbing with securities law. The call comes amid parallel SEC working concepts, a Rule 15c2‑11 proposal, industry meetings and competing policy bids (including graded taxonomies and new token categories), creating a near‑term choice between staged pilots and sweeping statutory change.
SEC Issues Crypto Security Framework; CFTC Endorses, Kalshi Faces Suspension
The SEC and CFTC released a joint interpretive taxonomy clarifying which tokenized assets federal securities laws will likely cover, while state prosecutors and courts have produced immediate operational disruptions — including a temporary court-ordered pause on Kalshi markets and an Arizona criminal indictment. The administrable tests and near-term pilot proposals narrow long‑run legal ambiguity but collide with fractured court rulings and political pressure, creating a short-term compliance squeeze for platforms and lawmakers.
SEC Issues Structured Guidance on Tokenized Securities, Tilting Infrastructure Toward Brokered Custody
The SEC published a concise framework separating tokenized securities into issuer-originated and third-party-originated classes and reiterated that existing securities laws fully apply to on‑chain representations. The guidance accepts blockchain as a permissible recordkeeping tool while signaling a preference for brokered custody and urging solutions that address counterparty, bankruptcy and market‑structure risks.