SEC releases custody guidelines for digital asset securities

The U.S. Securities and Exchange Commission (SEC) has issued new guidelines for broker-dealers regarding the custody of digital asset securities. The core of the guidance, under Rule 15c3-3, is that if a broker-dealer meets certain requirements, digital asset securities held on behalf of customers will be considered to be in the broker-dealer's physical possession for compliance purposes. The SEC stated that the move is intended to resolve uncertainty surrounding the application of federal securities laws to digital assets. The commission added that it is continuing to review issues related to broker-dealer custody of these assets and is providing this guidance as an interim step in response to requests from market participants.