The Staff statement provides a framework for broker-dealers seeking to maintain “physical possession” of digital asset securities, emphasizing operational security and risk mitigation.
On December 17, 2025, the Securities and Exchange Commission (Commission or SEC) Division of Trading and Markets (the Staff) issued a statement1 (the 2025 Crypto Custody Statement) on the application of the “possession” requirements of Rule 15c3-3 under the Securities Exchange Act of 1934 (the Customer Protection Rule) to fully paid and excess margin digital asset securities.2 The Staff continues to advance a clearer treatment of broker-dealer custody as it relates to digital assets in general, and digital asset securities in particular.
