Overview
- The Division of Trading and Markets on Dec. 17 updated its crypto FAQ and withdrew the 2019 SEC–FINRA joint staff statement on digital asset custody.
- Broker-dealers can satisfy “possession or control” by having direct on-chain transfer capability via private keys or qualifying control locations such as HSM setups, bank sub-custody with directive rights, or multisig designs.
- Firms must document blockchain and network assessments and enforce written policies to protect keys and address disruptions including 51% attacks, hard forks, airdrops, and other security incidents.
- Rule 15c3-3(b) applies only to crypto assets that are securities, while staff said it would not object to treating proprietary bitcoin and ether used in in-kind ETF flows as readily marketable for net capital calculations with a 20% commodity haircut.
- The clarification is a staff position rather than binding rulemaking, which opens practical avenues for major broker-dealers to enter tokenized securities custody as the industry awaits examiner guidance or formal rules.