TechFlow news: Fintech company tZERO Group Inc. announced it has received approval from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to become a "digital asset securities custodian" special purpose broker-dealer. This makes tZERO the second company, after Prometheum, to obtain such a license.
Notably, the cryptocurrency industry has long been at odds with the SEC over digital asset regulation. The SEC has consistently warned that cryptocurrency exchanges must register with the agency, and over the past year has accused Coinbase, Binance, and Kraken of allegedly operating unregistered exchanges, broker-dealers, dealers, and clearing agencies. Meanwhile, crypto firms argue they are unable to register with the agency.
SEC and FINRA did not immediately respond to requests for comment regarding tZERO's approval.
Previously, digital asset firm Prometheum received similar SEC approval last year, followed by FINRA approval, allowing it to offer digital asset securities clearing and settlement services through its special purpose broker-dealer license.
