U.S. SEC aids brokers on crypto custody, looks more closely at ATS activity

The U.S. Securities and Exchange Commission (SEC) released staff statements to clarify its stance on digital assets, focusing on two areas: broker custody of crypto securities and activity within crypto Alternative Trading Systems (ATSs). One statement advises regulated broker-dealers on how to achieve proper "physical possession" of customer crypto assets, including protecting private keys and anticipating blockchain malfunctions like 51% attacks or hard forks. Adherence to these informal standards should prevent SEC enforcement actions. Separately, the SEC issued an FAQ document scrutinizing crypto ATS activity, with Commissioner Hester Peirce emphasizing the need for clear market structure rules that facilitate fair and orderly markets. While the industry generally welcomed these statements, they lack the authority of formal rulemaking and could be easily reversed by future leadership.

(Source：CoinDesk)