The SEC issued a statement regarding broker-dealers holding crypto-asset securities.

The U.S. Securities and Exchange Commission's (SEC) Division of Trading and Markets issued a statement regarding broker-dealers holding crypto-asset securities, clarifying the applicability of Rule 15c3-3(b)(1) of the Securities Exchange Act to crypto-asset securities. The statement indicates that the SEC will not object to a broker-dealer's assertion of physical possession or control over crypto-asset securities in a client's account if the broker-dealer takes the following measures: Access and transfer capability: The ability to directly access crypto-asset securities and transfer assets on the relevant distributed ledger; Technical risk assessment: Implementing written policies to assess the characteristics and risks of distributed ledger technology and related networks; Risk mitigation: Not asserting possession of the assets if aware of significant security or operational issues with the relevant technology; Private key protection: Establishing internal controls to prevent the theft, loss, or unauthorized use of private keys, ensuring access is not available to anyone other than authorized personnel; Contingency planning: Ensuring the continued secure preservation and transfer of assets in the event of blockchain failures, 51% attacks, hard forks, or broker-dealer bankruptcy.