SEC Issues New Mandate: Broker-Dealers Must Control Crypto Private Keys or Face Consequences
On December 17, 2025, the SEC’s Division of Trading and Markets released a staff statement clarifying that broker-dealers must maintain exclusive control of private keys when holding crypto asset securities for customers.
This marks a significant shift from years of regulatory uncertainty that left many traditional financial institutions unable to offer crypto custody services. The guidance provides clear rules for firms wanting to hold tokenized stocks, bonds, and other digital securities on behalf of clients.
What the New Rules Require
The SEC’s statement focuses on how broker-dealers can meet the requirements of Rule 15c3-3, also known as the Customer Protection Rule. This long-standing regulation requires broker-dealers to…
