Eight Takeaways From My Conversation with the SEC Crypto Task Force’s Chief Counsel

The useful part

Taylor and I go back to the early days of crypto, having worked together at a prior firm alongside current Commodity Futures Trading Commission (CFTC) Chair Michael S. It's been rewarding to watch Taylor's trajectory in this space – and our conversation reflected the depth of experience he brings to the role. Where the Action Is Lindman described the Crypto Task Force's work as falling into two distinct buckets.

How it works

• The central question now is how existing market infrastructure, including the standard plumbing of broker-dealers, transfer agents, and clearing agencies, works when translated to blockchain rails.
• "Durability" Is the Watchword If there is one concept that pervades the Crypto Task Force's approach, it's durability.
• The first, defining what is and isn't a security under the investment contract analysis, consumed much of the early focus.
• Since December, when the Depository Trust & Clearing Corporation (DTCC) no-action letter kicked off a new phase, the second bucket has taken center stage.
• This is where the most significant regulatory development is happening right now, and it's where practitioners should be paying closest attention.

Example or evidence

• Lindman repeatedly emphasized building "a consistent bedrock" that will "be carried forward by market participants and ultimately become the standard upon which things are built." The implication for the...