TechFlow news, December 18 — On December 17, the U.S. Securities and Exchange Commission (SEC) Division of Trading and Markets issued an important statement clarifying the regulatory stance on broker-dealers holding custody of crypto asset securities. According to the statement, the SEC will not object to a broker-dealer treating itself as having "actual possession" of crypto asset securities under certain conditions, including that the broker-dealer must maintain policies, procedures, and controls that are reasonably designed and aligned with industry best practices to safeguard private keys.
The statement provides clear guidance for broker-dealers wishing to offer custody services to clients, and applies to various types of crypto asset securities, including tokenized equity or debt securities. SEC Commissioner Hester M. Peirce encouraged the Division of Trading and Markets to quickly develop recommendations for amending Rule 15c3-3 to comprehensively address custody issues related to crypto assets.
