The U.S. Securities and Exchange Commission issued detailed guidelines for broker-dealers on custody of crypto asset securities. The guidance addresses how firms can comply with existing customer protection rules while holding tokenized stocks and bonds on blockchain networks.
What Happened: Custody Requirements
The SEC's Division of Trading and Markets published a statement on Dec. 17 explaining how broker-dealers can meet requirements under Rule 15c3-3 when holding crypto asset securities for customers.
The rule requires broker-dealers to maintain physical possession or control of fully paid and excess margin securities carried for customer accounts. The new guidance clarifies that firms can be considered in physical possession of crypto assets if they maintain direct access to the assets and the ability to transfer them on the distributed ledger.
Broker-dealers must conduct thorough assessments of the distributed ledger technology and associated network before holding crypto asset securities.
They must establish written policies and procedures to protect assets and private keys, prevent unauthorized access by customers or third parties, and address potential disruptions including theft, network attacks and hard forks.
The agency specified that broker-dealers cannot deem themselves in possession if they are aware of material security or operational problems with the distributed ledger technology.
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Why It Matters: Regulatory Framework
Paul Atkins, SEC chairman, said distributed ledger technology and tokenization of financial assets "have the potential to transform our capital markets."
The guidance represents part of the SEC's broader effort to provide clarity on how federal securities laws apply to crypto assets. The agency recently published investor education materials on crypto custody options and is working to modernize rules for tokenized securities markets.
Atkins confirmed the Commission will issue innovation exemption rules for crypto firms in January 2026.
The exemptions would allow companies to launch products without full registration requirements while operating under principles-based conditions designed to achieve core policy aims of federal securities laws.
The guidance does not address the "control" prong of Rule 15c3-3, which the Division covered separately in earlier frequently asked questions published in May 2025.
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