{"id":64349,"date":"2025-12-19T07:16:33","date_gmt":"2025-12-19T07:16:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=64349"},"modified":"2025-12-19T07:16:33","modified_gmt":"2025-12-19T07:16:33","slug":"us-sec-issues-key-crypto-custody-guidelines-for-broker-dealers","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=64349","title":{"rendered":"US SEC Issues Key Crypto Custody Guidelines For Broker-Dealers"},"content":{"rendered":"
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In its latest effort to provide clearer regulatory clarity, the US Securities and Exchange Commission (SEC) has published detailed guidelines for broker-dealers on the custody of crypto assets.<\/p>\n

SEC Clarifies Crypto Custody Standards For Broker-Dealers<\/h2>\n

On Wednesday, the SEC\u2019s staff of the Division of Trading and Markets issued<\/a> a statement addressed its views on the application of paragraph (b)(1) of Rule 15c3-3 to crypto assets that are considered securities, including tokenized versions of an equity or debt security.<\/p>\n

Under Securities Exchange Act of 1934, Rule 15c3-3 requires any broker-dealer to \u201cpromptly obtain and thereafter maintain physical possession or control of all fully paid and excess margin securities it carries for the account of customers.\u201d<\/p>\n

The new guidelines<\/a> clarify how \u201cany broker-dealer that carries crypto asset securities for customers, including broker-dealers that conduct a traditional securities business\u201d can maintain compliance with this rule despite tokens being on the blockchain.<\/p>\n

According to the SEC\u2019s statement, a broker-dealer can consider itself to have \u201cphysical possession\u201d of the crypto assets if it has direct access to the asset and the capability to transfer it on the associated distributed ledger technology (DLT).<\/p>\n

Broker-dealers must also conduct and document an throughout assessment \u201cof the distributed ledger technology and the associated network where transfers of ownership of a crypto asset security are recorded prior to undertaking to maintain possession of the crypto asset security, and at reasonable intervals thereafter.\u201d<\/p>\n

In additions, they must establish, maintain, and enforce \u201creasonably designed written policies and procedures\u201d to ensure the assets\u2019 security, the protection of private keys, they have adequate plans to address unexpected disruptions<\/a> to its possession of the crypto assets, including theft, unauthorized used, network attacks, and hard forks.<\/p>\n

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This circumstance emphasizes that a broker-dealer has policies, procedures, and controls reasonably designed to help ensure that no other person, including the broker-dealer\u2019s customer or a third-party (including the broker-dealer\u2019s affiliate), has access to the relevant private keys and the ability to transfer the asset without the authorization of the broker-dealer.<\/p>\n<\/blockquote>\n

Meanwhile, the agency explained that \u201ca broker-dealer does not deem itself to possess a crypto asset security if the broker-dealer is aware of any material security or operational problems or weaknesses with the distributed ledger technology and associated network used to access and transfer the crypto asset security or is aware of other material risks posed to the broker-dealer\u2019s business by custodying the crypto asset security.\u201d<\/p>\n

SEC\u2019s Path To Clearer Rules<\/h2>\n

The SEC affirmed that the statement is part of its efforts to provide greater clarity on the application of federal securities laws to crypto assets. Notably, the regulatory agency recently published<\/a> guidelines to help educate retail investors about the ways they can hold crypto assets and is pushing to modernize its rules to facilitate an positive market environment.<\/p>\n

Earlier this month, the US regulator revealed it is evaluating tokenization to modernize the issuance, trading, and settlement of public equities. SEC chairman Paul Atkins asserted that \u201cDistributed ledger technology and the tokenization of financial assets, including securities, have the potential to transform our capital markets.\u201d<\/p>\n

Moreover, Atkins recently stated<\/a> that the Commission could issue innovation exemption rules for crypto firms in early 2026. \u00a0The agency has been considering the rule exemption since July to \u201cpermit novel ways of trading and more narrowly tailored forms of relief to facilitate the building of other components of a tokenized securities ecosystem.\u201d<\/p>\n

The change would allow<\/a> crypto firms to quickly launch products without having to comply with \u201cburdensome prescriptive regulatory requirements that hinder productive economic activity.\u201d Instead, they would \u201cbe able to comply with certain principles-based conditions designed to achieve the core policy aims of the federal securities laws.\u201d<\/p>\n

\"crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In its latest effort to provide clearer regulatory clarity, the US Securities and Exchange Commission (SEC) has published detailed guidelines for broker-dealers on the custody of crypto assets. SEC Clarifies Crypto Custody Standards For Broker-Dealers On Wednesday, the SEC\u2019s staff of the Division of Trading and Markets issued a statement addressed its views on the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-64349","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/64349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64349"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/64349\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}