The SEC Withdraws Its Joint Statement on the Custody of Digital Asset Securities by Brokers and Dealers
On May 15, the SEC withdrew the previously issued joint statement by the Division of Trading and Markets and the Financial Industry Regulatory Authority, Inc. (FINRA) regarding the custody of digital asset securities by broker-dealers (Withdrawn Statement). Under the Withdrawn Statement, among other things, the SEC required broker-dealers to consider how they might comply with customer protection rules such as SEC Rule 15c3-3, which imposes certain obligations on broker-dealers that have possession or control of digital asset securities. Additionally, the Withdrawn Statement outlined considerations on how federal securities laws and regulations might apply to broker-dealers handling digital assets, and specifically warned broker-dealers to carefully consider all regulatory requirements when engaging in the custody of digital asset securities. The withdrawal of the Withdrawn Statement indicates that the SEC is committed to engaging in an evolving regulatory landscape surrounding digital assets.
