SEC Trading Division Clarifies Broker-Dealer Crypto Asset Rules
On 15 May 2025, the US Securities and Exchange Commission’s Division of Trading and Markets (Division) released Frequently Asked Questions (FAQs) clarifying how certain broker-dealer and transfer agency rules relate to crypto asset activities. On the same day, the Division and FINRA’s Office of General Counsel withdrew their 8 July 2019 Joint Statement on Broker-Dealer Custody of Digital Asset Securities.
In the context of spot crypto exchange-traded products (ETPs), the FAQs address the Division’s views about broker-dealer custody rules in the context of in-kind creations and redemptions, noting that the possession and control requirements in Rule 15c3-3 under the Securities Exchange Act of 1934 are not triggered if…
