SEC Establishes Crypto Custody Framework for Broker-Dealers
The U.S. Securities and Exchange Commission has issued definitive guidance on how broker-dealers can maintain compliance with Rule 15c3-3 when handling crypto assets deemed securities. The framework recognizes blockchain's unique characteristics while upholding investor protection standards established in 1934.
Physical possession of tokenized assets can now be demonstrated through direct access to blockchain networks and transfer capability on distributed ledgers. This interpretation bridges traditional custody requirements with cryptographic reality, where private keys replace physical certificates.
Broker-dealers must conduct rigorous assessments of underlying blockchain technology and maintain detailed documentation. The MOVE signals regulatory acknowledgment of crypto's permanence in capital markets while preserving the SEC's mandate to prevent investor harm.
