The SEC Crypto Task Force will receive new submissions on the CLARITY Act
The filings will increase pressure on regulators as Coinbase CEO Brian Armstrong calls for a deal to pass market structure legislation.
The US Securities and Exchange Commission's (SEC) Crypto Task Force's “Written Input” page added two new entries on Tuesday that focus on how self-regulation rights and proprietary trading should be regulated in tokenized and decentralized finance (DeFi) markets.
One submission came from “DK Willard” focused on Louisiana retail users, and the other from the Blockchain Association Trading Firm's Working Group on Dealer Rules for Tokenized Equity Markets.
Submissions Target Self-Defense Protection, DeFi
Louisiana's submission cites state law HB 488, which guarantees residents' right to self-protect their digital assets, and argues that the upcoming federal crypto market structure law should maintain strong registration, transparency, and anti-fraud and anti-exploitation requirements.
In some federal proposals, exemptions would allow developers and platforms to avoid core investor protection obligations, warning consumers that they would increase the risk of fraud and financial crimes.
The Blockchain Association's letter asks the SEC to state immediately that companies that trade tokenized shares and defensible assets solely for their own account, without customer solicitation, protection or agency performance, should not immediately be considered “dealers” for purposes of registration under the Exchange Act.
Related: DeFi leaders voice concerns over future of market structure
It also noted that existing broker-dealer laws are designed for traditional markets and may need to be adapted for smart contract agreements.
CLARITY terminations and industry response
Negotiations will come as the proposed Federal Crypto Market Structure Act CLARITY continues in Congress.
Senior White House crypto advisor Patrick Witt urged the industry to accept deals to pass the act while Republicans still control Congress, and with the Trump administration in office, he highlighted how lawmakers and the industry are trying to balance issues in the legislative text regarding stable coin production, cryptocurrency liquidity and investor protection.
Speaking from Davos on Wednesday, Coinbase CEO Brian Armstrong acknowledged the progress in developing CLARITY, saying:
We are all working together to find a win-win situation for everyone, especially the American people.
Magazine: How crypto rules changed in 2025 – and how they will change in 2026
