SEC Clarifies Crypto Custody Rules for Broker-Dealers Under Rule 15c3-3
The U.S. SEC Division of Trading and Markets has issued new guidance on applying Rule 15c3-3 to crypto asset securities, specifically addressing paragraph (b)(1)'s physical possession requirements. Five specific circumstances now exempt broker-dealers from objections when deeming physical possession as valid identification.
The MOVE aims to clarify custody obligations for tokenized equity or debt securities recorded on distributed ledgers. Commissioner Hester Peirce endorsed the guidance's clarity while urging swift recommendations for potential amendments to the rule.
This development marks another step in the SEC's ongoing effort to adapt federal securities laws to crypto assets, with particular focus on how broker-dealers maintain control of customer-account securities.
