SEC Advances Rules on Broker-Dealer Crypto Custody
The SEC on Dec. 17, 2025 published detailed guidance outlining how broker-dealers can lawfully custody crypto asset securities under existing customer protection rules. The guidance spells out expectations for possession and control, required risk-management frameworks, and operational safeguards, while signaling that regulators will expect robust controls for digital assets comparable to traditional securities.
The clarification reduces a key source of regulatory uncertainty and could encourage more broker-dealers and institutional players to offer custody or custody-related services for tokenized securities. At the same time, firms should expect higher compliance and infrastructure costs as they adapt systems, audit trails and insurance arrangements to meet the SEC’s standards. Market participants say the move balances investor protection with operational clarity, but implementation timelines and enforcement posture will determine how quickly the industry adjusts.