US SEC Releases Regulatory FAQ on Crypto Assets and Distributed Ledger Technology | PANews

PANews, December 18 – According to an announcement on the official website of the U.S. Securities and Exchange Commission (SEC), the SEC’s Division of Trading and Markets recently released a set of Frequently Asked Questions (FAQs) regarding crypto asset and distributed ledger technology (DLT) activities. The aim is to provide compliance guidance for market participants, covering the following core areas:

1. Broker-Dealer Responsibilities: Non-securities crypto assets are not subject to Rule 15c3-3 of the Securities Exchange Act, but if they are “crypto asset securities,” brokers may establish “control” under this rule to meet compliance requirements. The SEC does not object to assets in non-paper form.

2. Customer Asset Protection: If a crypto asset is not a registered product under the Securities Act, SIPC (Securities Investor Protection Corporation) will not provide protection. The SEC recommends treating non-securities crypto assets as “financial assets” under Article 8 of the UCC and placing them in “securities accounts” to enhance the independence of customer assets in the event of clearing bankruptcy.

3. Dual-Asset Trading Pairs: National Securities Exchanges (NSE) and Alternative Trading Systems (ATS) may offer trading pairs of “crypto securities/non-securities assets,” provided regulatory requirements are met and relevant information is fully disclosed in Form ATS or ATS-N.

4. Transfer Agents and DLT: If a transfer agent provides securities transfer services for crypto asset issuers and the assets are registered securities under Section 12, registration with the SEC is required. The SEC does not object to using blockchain as the primary ledger, provided all federal recordkeeping and regulatory requirements are satisfied.

5. Clearing, Settlement, and ETPs: Registered brokers operating an ATS may clear customer trades internally on their account ledgers; the SEC does not require registration as a clearing agency. For ETPs referencing crypto assets, the SEC does not object to following the no-action letter issued in 2006 for commodity ETPs.