SEC Staff Issues Helpful Guidance on Custodying Digital Asset Securities and Complying with the Customer Protection Rule

On Wednesday, December 17, the SEC’s Division of Trading and Markets (Division) issued a helpful statement (the Statement) to clarify its views on how a broker-dealer can meet its obligation pursuant to paragraph (b)(1) of Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the Customer Protection Rule), with respect to digital or crypto assets that are securities that a broker-dealer may carry for the accounts of its customers….
By: Katten Muchin Rosenman LLP