SEC Crypto Newsroom/
No Longer Special: Statement on the Division of Trading and Markets' Statement Related to the Custody of Crypto Asset Securities by Broker-Dealers
The SEC's Division of Trading and Markets issued a statement clarifying that broker-dealers can be deemed to have 'physical possession' of crypto asset securities if they maintain industry-standard controls to protect private keys.
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Why It Matters
It provides regulatory clarity for broker-dealers wanting to offer custody services for tokenized equity or debt securities, potentially lowering barriers for institutional entry.