Clearer rules for brokers, investor protection, and blockchain integration

The U.S. Securities and Exchange Commission (SEC) has released new clarifying guidance for brokers, dealers, and transfer agents involved in crypto asset trading. This move stems directly from meetings with the Chainlink project, which helped clarify key questions about using public blockchains and their compliance with regulation.

The guidance comes in the form of Frequently Asked Questions (FAQs) and offers important clarifications about when crypto assets are treated as securities and how they should be handled.

Changes in Custody Requirements and Client Protection

One major question was whether brokers and dealers are required to maintain physical custody for cryptocurrencies that are not classified as securities. The SEC stated that this rule only applies to actual securities. In practice, this means that most crypto assets do not fall under the stricter regulatory safeguards — but it also means they’re not protected under SIPA if a broker goes bankrupt.

However, the SEC recommended that brokers and clients could agree on specific treatment for such assets, allowing them to be handled as financial instruments held on securities accounts — potentially preventing them from becoming part of the broker’s estate in liquidation.

Regulator Signals Shift — Listening to the Industry

SEC Commissioner Hester Peirce welcomed the new guidance, calling it a “step in the right direction.” However, she noted it’s not a final solution and that the crypto industry still needs much more regulatory clarity. Key questions remain open, such as how brokers can handle tokenized securities, or how capital requirements should apply to cryptocurrencies.

At the same time, the SEC encouraged the industry to keep asking questions and seeking support — a noticeable shift from its previously cautious stance.

Chainlink, a leading oracle protocol bridging blockchain with external data, acknowledged its key role in shaping this initiative. During a meeting with the SEC, the team answered critical questions about privacy, transparency, and how public blockchains could comply with existing financial rules.

According to Chainlink, this guidance will help remove barriers that have prevented traditional financial institutions from embracing blockchain. Their goal is to support broader adoption of tokenized assets on public blockchains.

The project also stated it recently joined further discussions with the U.S. Treasury Department — this time about the future of decentralized finance (DeFi), continuing its influence as one of the crypto industry’s main voices in shaping the future of finance.

#Chainlink , #defi , #blockchain , #crypto , #SEC



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