SEC and FINRA Issue Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities: Identifies Compliance Challenges for Broker-Dealers Seeking to Custody Digital Asset Securities and Welcomes Ongoing Engagement With Industry on Proposed Methods to Comply

Sullivan & Cromwell LLP - July 18, 2019

On July 8, 2019, the Staffs of the SEC’s Division of Trading and Markets and FINRA’s Office of General Counsel issued a joint statement identifying compliance challenges for broker-dealers seeking to custody digital asset securities and welcoming ongoing engagement with the industry on proposed methods to comply with custodial requirements of the Customer Protection Rule.