Other Voices: SEC gives special purposes brokers the go-ahead on digital assets custody Tuesday, December 29, 2020
By:Peter LaVigne, Nicholas Losurdo, Jana Steenholdt - Goodwin
Christmas came early for many in the digital asset community by way of a statement from the U.S. Securities and Exchange Commission on December 23, 2020 that grants relief in the area of broker custody of digital asset securities. The framework laid out by the SEC will operate somewhat like a hybrid no-action letter/safe harbor/pilot program, pursuant to which special purpose brokers may follow certain, specific steps and custody digital asset securities during a five-year program period without the risk of facing an enforcement action.
SEC Gives Broker-Dealers Room to Handle Crypto Securities
SEC Chairman Jay Clayton
Updated Dec 23, 2020 at 8:36 p.m. UTC
SEC Gives Broker-Dealers Room to Handle Crypto Securities
The U.S. Securities and Exchange Commission (SEC) is showing signs it might budge on letting crypto custodians become regulated broker-dealers specifically for digital assets.
The Commission announced Wednesday that it would let crypto-focused broker-dealers operate for five years without fear of an enforcement action provided they can verify they have possession and control of customers’ digital asset securities. The SEC is looking for feedback on the proposal, which comes after months of industry requests for clarity around the issue.