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:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

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.

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.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

Maple Finance has successfully navigated significant market challenges through its strategic pivot to secured lending (Maple v2) and the launch of its Syrup product. Syrup has become a primary growth driver, delivering sustainable, outperforming stablecoin yields and rapidly increasing TVL. The upcoming custody-first Bitcoin staking product (istBTC) presents another significant avenue for expansion. Crucially, Maple has achieved operational profitability, a key inflection point that, combined with a fully vested token and active buyback mechanism, strengthens its investment case. While valuation metrics suggest potential undervaluation relative to peers and growth, the primary forward-looking risk identified is the long-term sustainability of its current high-take-rate collateral staking revenue model.

article-image

In 2014, Microsoft virus scanners were detecting viruses in Bitcoin software

article-image

Ledn’s Mauricio Di Bartolomeo explained how this cycle’s been different for the lender

article-image

The shorts looking for funding range from charming animated series to gritty live-action dramas

article-image

Money, it turns out, is emergent, like consciousness

article-image

Bridge flows churn in both directions as risk appetite returns