SEC’s Division of Trading and Markets Releases Statement and FAQs Related to Crypto Assets

The SEC’s Division of Trading and Markets (the “Division”) has released a statement to clarify its views on the custody of crypto asset securities by broker-dealers. The statement is part of the Division’s broader attempts to “provide greater clarity on the application of the federal securities laws to crypto asset securities.”

The Division has also issued FAQs on the relationship between crypto asset activities and distributed ledger technology. Topics covered in the FAQs include issues related to broker-dealers, transfer agents, crypto asset pairs trading by national securities exchanges and alternative trading systems (ATSs), Form ATS and Form ATS-N disclosures, non-ATS activities performed by ATS broker-dealer operators, clearance and settlement, and exchange-traded products.

For more information see the statements on the Division statement and FAQs by SEC Commissioner Hester Peirce.