The SEC Division of Trading and Markets released a statement on December 17, 2025, regarding broker-dealers handling crypto asset securities' custody under Rule 15c3-3(b)(1).
This statement impacts how broker-dealers manage risks linked to crypto asset securities, potentially affecting custody services and operational structures within the crypto market.
The SEC Division of Trading and Markets recently issued a statement on December 17, 2025, regarding broker-dealer custody of crypto asset securities. This statement specifically addresses Rule 15c3-3(b)(1) and highlights custody conditions.
The statement applies to broker-dealers and includes conditions to maintain "physical possession or control" of crypto asset securities. This includes provisions for distributed ledger assessments and handling material risks like 51% attacks. More guidance can be found in the crypto asset activities FAQ by SEC.
Broker-Dealers Face New Crypto Custody Measures
Broker-dealers must implement specific measures, like risk monitoring strategies, for custody eligibility. The impact on crypto asset securities markets remains to be seen, as detailed reactions from industry players are currently limited.
The guidance emphasizes safeguarding against technological disruptions and legal issues, which is crucial for regulatory compliance. Historical data from past SEC statements, such as Peirce’s remarks during SEC Speaks event, show evolving approaches to broker-dealer custody guidelines.
It appears that there are no identifiable quotes from key players, leadership, or experts in the primary sources regarding the SEC Division of Trading and Markets' statement on December 17, 2025. The information is largely focused on regulatory updates and does not contain direct statements or opinions from named individuals.
Evolution from 2019 SEC-FINRA to 2020 SPBD
Previous SEC statements, like the 2019 Joint SEC-FINRA Statement, restricted broker-dealer custody, while 2020 SPBD offered a temporary safe harbor. These frameworks inform current custody approaches for digital securities.
Favorable outcomes hinge on broker-dealers' adherence to compliance and security measures. Experts highlight the significance of SEC's evolving stance, as seen in Uyeda's remarks on regulatory harmonization efforts, which influences how securities are managed within emerging crypto markets.
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