New SEC submissions press on self-custody and DeFi regulation

The submissions add to mounting pressure on regulators as Coinbase CEO Brian Armstrong calls for compromise to pass market structure legislation.

The United States Securities and Exchange Commission’s (SEC) Crypto Task Force “Written Input” page added two new submissions on Jan. 20 that focus on self‑custody rights and how proprietary trading in tokenized and decentralized finance (DeFi) markets should be regulated. 

One submission comes from “DK Willard,” centered on Louisiana retail users, and the other from the Blockchain Association Trading Firm Working Group on dealer rules for tokenized equity markets.

The Louisiana submission cites state law HB 488, which affirms residents’ right to self-custody digital assets, and argues that upcoming federal crypto market structure legislation should preserve strong registration, transparency, and anti‑fraud and anti‑manipulation requirements. 

Read more