TechFlow news, December 18 — According to an official website announcement, the U.S. SEC’s Division of Trading and Markets has released a set of frequently asked questions (FAQs) regarding cryptocurrency and distributed ledger technology (DLT) activities, aiming to provide compliance guidance for market participants. The content covers the following key areas:
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Broker-Dealer Responsibilities: Non-security crypto assets are not subject to Rule 15c3-3 under the Securities Exchange Act. However, for "crypto asset securities," brokers may establish "control" under this rule to meet compliance requirements. The SEC does not object to non-paper forms of assets.
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Customer Asset Protection: If a crypto asset is not a registered product under the Securities Act, it will not be protected by SIPC (Securities Investor Protection Corporation). The SEC recommends treating non-security crypto assets as "financial assets" under Article 8 of the UCC and holding them in "securities accounts" to enhance customer asset segregation during liquidation or bankruptcy.
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Paired Asset Trading: National securities exchanges (NSEs) and alternative trading systems (ATSs) may offer paired trading of "crypto securities/non-security assets," provided they comply with regulatory requirements and fully disclose relevant information in Form ATS or ATS-N.
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Transfer Agents and DLT: If a transfer agent provides securities transfer services for issuers of crypto assets that are registered securities under Section 12, it must register with the SEC. The SEC does not object to using blockchain as the primary ledger, provided all federal recordkeeping and regulatory requirements are met.
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Clearing, Settlement, and ETPs: A registered broker-dealer operating an ATS may perform customer trade clearing within its own account ledgers, and the SEC does not require mandatory registration as a clearing agency. Regarding ETPs referencing crypto assets, the SEC does not object to their operation following the no-action letter approach used for commodity-based ETPs in 2006.
