Overview
- The SEC’s Division of Trading and Markets advised broker-dealers on “physical possession” of crypto securities, including safeguarding customers’ private keys.
- Firms are told to plan for blockchain-specific risks such as malfunctions, 51% attacks, hard forks and airdrops.
- The statement is nonbinding, though the agency says firms that follow it should not face enforcement.
- The scope includes tokenized stocks and debt even as the definition of a crypto security remains unsettled.
- A separate FAQ examines activity at crypto alternative trading systems with emphasis on trading and settlement, according to Commissioner Hester Peirce.