U.S. SEC aids brokers on crypto custody, looks more closely at ATS activity
It’s brokers’ turn for crypto clarity in the U.S. Securities and Exchange Commission’s series of staff statements meant to reveal its current thinking on how to treat the digital assets space, in this case touching on brokers’ “physical possession” of assets and separately posing some questions about so-called alternative trading systems (ATSs) for crypto.
One of the two latest releases this week deals with custody of customers’ crypto securities at regulated broker-dealers, advising the firms on how to properly possess those assets, including protecting customers’ private keys. As long as they follow the informal standards set out in the statement, broker-dealers won’t get a knock on their door from the SEC.
Their approach must also…
