Ex-SEC counsel expects token classifications, custody guidance soon

Adrienne Gurley outlines what she believes will be key near-term priorities for the securities regulator

article-image

Rabanser/Shutterstock modified by Blockworks

share


This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.


Former SEC senior counsel Adrienne Gurley yesterday gave her take on how the SEC could approach the influx of crypto ETF proposals. She had a few other things to say. 

For one, the Venable LLP partner told me she’s expecting token classification guidance and custody rule revisions to be key near-term priorities for the securities regulator.

President Donald Trump’s executive order laid out 30-, 60- and 180-day deadlines for the SEC and others. The dates to watch appear to be:

  • Feb. 22, by which agencies identify regulations/guidance/orders affecting the digital assets sector. 
  • March 24, by which each agency submits recommendations related to those. 
  • And finally, July 22, by which the working group sends a report to the president.

“Clear guidance will increase confidence in the market, encourage innovation (something that is a focus of [Paul] Atkins), and allow for larger financial institutions to consider entering the crypto custody business,” Gurley said.

Getting rid of SAB 121 was a start. Galaxy Digital execs wrote in a Wednesday report they expect traditional banks to provide crypto custody and trading — “starting a process that could see them gradually transform into self-custodial neobanks.”

The next step: the world’s top custody banks safeguarding digital assets. This could help spur the SEC to allow spot bitcoin and ether ETFs to perform in-kind creations and redemptions, they add.

“Banks could also begin offering lending and financing services for digital assets, such as margin trading backed by bitcoin collateral or the creation of innovative structured products that provide bespoke exposure to the underlying digital assets,” the Galaxy pros noted.

As for the SEC’s enforcement strategy, any matters involving fraud (related to crypto or not) will remain a priority, Gurley explained.

But, she noted, the commission is likely to step away from investigating crypto cases purely based on registration violations. Particularly after an appeals court again called out the SEC for “arbitrary and capricious” behavior.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your day with top crypto insights from David Canellis and Katherine Ross.
  • Forward Guidance: Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin.
  • 0xResearch: Get alpha directly in your inbox — market highlights, charts, degen trade ideas, governance updates, and more.
  • Lightspeed: All things Solana, in your inbox, every day from Jack Kubinec and Jeff Albus.
  • The Drop: The newsletter for crypto collectors and traders, covering games, tokens, apps, memes and more.
Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

monad ecosystem report graphic.png

Research

Monad's testnet launch has shown promise with 57 geographically distributed validators and over 20 live applications on day one. However, the ecosystem's true test will come with mainnet as it transitions from testing to real economic activity alongside the launch of the native gas token.

article-image

Senate Majority Leader John Thune said the IRS rule “puts at risk the privacy and security” of millions of Americans trading digital assets

article-image

Commerce Secretary Howard Lutnick reportedly said a bitcoin strategic reserve could be “executed on Friday”

article-image

If there’s an amount of S&P 500 pain Trump is willing to endure, we don’t know it

article-image

The Normal Mfer is just a degen with a dog — until life is turned upside down

article-image

USDN lets apps and rollups distribute the underlying T-bill yield to users

article-image

In an X Spaces debate, Lily Liu urged Solana to take a more holistic approach to inflation