SEC Issues Statement and Request for Comment on the Custody of Digital Asset Securities by Broker-Dealers

The SEC has issued a statement and request for comment, Custody of Digital Asset Securities by Special Purpose Broker-Dealers, that are intended to “encourage innovation around the application of Securities Exchange Act Rule 15c3-3 to digital asset securities.” Under Rule 15c3-3, also known as the Customer Protection Rule, a broker-dealer must “promptly obtain and thereafter maintain physical possession or control of all fully-paid and excess margin securities it carries for the account of customers.”

The Commission statement and request for comment will become effective 60 days after the date of their publication in the Federal Register. For more information, see the press release on the SEC’s Web site.