US market regulator issues guidance on custody of digital asset securities

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 66%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

WASHINGTON: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid ...

WASHINGTON: The U.S. Securities and Exchange Commission on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such assets under federal securities laws.

The SEC's statement, issued in conjunction with the general counsel of the Financial Industry Regulatory Authority , clarified that entities seeking to participate in the marketplace for digital asset securities must comply with the relevant securities laws, most notably the customer protection rule.

"This record of protecting customer assets held in custody by broker-dealers stands in contrast to recent reports of cybertheft, and underscores the need to ensure broker-dealers robust protection of customer assets, including digital asset securities," it added. Monday's statement follows queries from market participants over whether federal laws apply to the custody of digital asset securities, such as crypto currencies. It could potentially pave the way for more traditional investors to hold digital asset securities.

While various firms already registered as broker-dealers are seeking to expand their businesses to include digital asset securities services, the SEC says non-registered firms would likely have to register as a broker-dealer before engage in this activity.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in MY
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines