Tokenized stocks may be onchain, but the SEC still wants the keys

The US Securities and Exchange Commission’s Trading and Markets Division issued guidance clarifying that broker-dealers can custody tokenized stocks and bonds under existing customer protection rules, provided they meet specific operational, security, and governance conditions. This guidance effectively slots blockchain-based crypto asset securities into traditional safeguards rather than creating a new category. Central to this is Rule 15c3-3, which requires broker-dealers to maintain possession of fully paid customer securities; for onchain assets, this means retaining exclusive control over the private keys necessary for access and transfer, ensuring customers or third parties cannot move the assets without broker authorization. This approach prioritizes customer protection over permissionless crypto models and requires broker-dealers to prepare for blockchain disruptions like 51% attacks or hard forks. Concurrently, SEC Commissioner Hester Peirce raised questions about the trading-side challenges for crypto asset securities under existing exchange frameworks. This regulatory clarity arrives as platforms like Nasdaq, Securitize, and Coinbase are actively moving forward with tokenized equity offerings.

(Source：Cointelegraph)