The SEC issued a statement regarding broker-dealers holding crypto-asset securities.

Odaily Planet Daily reports that the U.S. Securities and Exchange Commission's (SEC) Division of Trading and Markets has issued a statement regarding broker-dealers holding crypto-asset securities, clarifying the applicability of Rule 15c3-3(b)(1) of the Securities Exchange Act to crypto-asset securities. The statement indicates that the SEC will not object to a broker-dealer's determination that it has physical possession or control over crypto-asset securities in a client's account if the broker-dealer takes the following actions:

Access and transfer capabilities: The ability to directly access encrypted asset securities and transfer assets on the relevant distributed ledger;

Technology Risk Assessment: Implement written policies to assess the characteristics and risks of distributed ledger technology and related networks;

Risk avoidance: If you become aware of significant security or operational problems with the relevant technology, you must not claim possession of the asset.

Private key protection: Establish internal controls to prevent private keys from being stolen, lost, or used without authorization, and ensure that no one other than authorized personnel can access them;

Contingency Plan: Ensure assets can be securely preserved and transferred in the event of blockchain failures, 51% attacks, hard forks, or brokerage firm bankruptcies.