The Securities and Exchange Commission (SEC) continues to reverse the damaging policies enacted by the SEC during the Biden Administration.
Today, the SEC announced that it has withdrawn the previous guidance on Broker-Dealers and the custody of digital assets. The SEC Division of Trading and Markets and FINRA have joined in declaring the change effective immediately.
In July 2019, the SEC issued a statement on crypto custody designed to undermine the digital asset sector. The chilling words declared that the “nature of distributed ledger technology, as well as the characteristics associated with digital asset securities, may make it difficult for a broker-dealer to evidence the existence of digital asset securities for the purposes of the broker-dealer’s regulatory books, records, and financial statements, including supporting schedules.”
The fearmongering by the Commission cooled interest in the sector.
As the Trump administration is pro-innovation and supportive of digital assets, the sector is now rejoicing as the US is now moving forward with the intent of becoming a global digital asset hub.
The SEC advises that interested parties may contact the Crypto Task Force for assistance. The Task Force recently held a roundtable focused on digital asset custody.