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ARTICLE · 05 JUNE 2025

A New Charter For Broker-Dealer Crypto Custody

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The SEC Staff and FINRA withdrew their controversial 2019 joint statement on broker-dealer custody.

United StatesTechnology
Neel Maitra
Neel Maitra
David P. Bartels
David P. Bartels
Brenden Carroll
Brenden Carroll
Mark D. Perlow
Mark D. Perlow
Derek Manners
Derek Manners

Key Takeaways

  • The SEC Staff and FINRA withdrew their controversial 2019 joint statement on broker-dealer custody. The statement had imposed major obstacles for SEC-registered broker-dealers to take custody of crypto assets, including crypto asset securities.
  • The SEC Staff also issued FAQs that address certain crypto- and blockchain-related activities by SEC-registered broker-dealers and transfer agents.
  • Among other things, the FAQs contemplate broker-dealers taking custody of crypto asset non-securities (such as bitcoin), alongside crypto asset securities.
  • The FAQs confirm that broker-dealers can facilitate in-kind creations and redemptions for spot crypto exchange-traded products.

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