The US SEC issues guidance on broker-dealer crypto asset custody and crypto ATS operations

According to Odaily, the U.S. Securities and Exchange Commission (SEC) this week issued the latest staff statement through its Division of Trading and Markets, providing operational guidance for regulated broker-dealers on the custody of client crypto assets, and simultaneously released a FAQ document regarding crypto Alternative Trading Systems (ATS).

Regarding custody, the SEC pointed out that as long as broker-dealers follow the informal standards outlined in the statement—including proper safekeeping of client private keys and proactively considering scenarios such as blockchain failures, 51% attacks, hard forks, or airdrops—regulators will not take enforcement action. This guidance applies to crypto securities, including tokenized stocks and debt securities, though related definitions still require further clarification.

In addition, the SEC highlighted key regulatory concerns regarding the trading and settlement activities of crypto ATS. Hester Peirce, head of the SEC Crypto Working Group and Commissioner, stated that trading platforms and market participants need to operate under clear market structure rules to promote a fair and orderly market environment without imposing unnecessary burdens. (CoinDesk)