# SEC trading staff states conditions for broker-dealer possession of crypto-asset securities

> Trading and Markets staff described a conditional path for broker-dealers to deem themselves in physical possession of customer crypto-asset securities, including network assessment, private-key controls, incident planning, transfer capability, and wind-down arrangements.

- URL: https://riadefi.com/regulation/2025-12-17-sec-broker-dealer-crypto-custody-statement/
- Posture: Guidance
- Authorities: SEC Division of Trading and Markets
- Event date: 2025-12-17
- Version: 1, published 2026-08-07 (first published 2026-08-07)
- Advisor-relevant: yes

## What changed

Trading and Markets staff described a conditional path for broker-dealers to deem themselves in physical possession of customer crypto-asset securities, including network assessment, private-key controls, incident planning, transfer capability, and wind-down arrangements. The Division also expanded its FAQs on custody, trading, and settlement; both are staff views rather than Commission rules.

## Who it affects

- Broker-dealers carrying crypto-asset securities
- Advisers and clients relying on broker-dealer custody or tokenized-security trading

## What is still open

- Commission amendments to Rule 15c3-3 and treatment of non-security crypto assets
- How FINRA will examine implementations and approve material business changes

## What it means for an advisor

- Require evidence of network assessment, exclusive key control, fork and airdrop procedures, lawful freeze capability, incident response, and wind-down transfer planning
- Distinguish possession, control-location, and qualified-custodian analyses across the adviser and broker-dealer regimes

## Previous interpretation

The 2020 special-purpose broker-dealer framework and earlier FAQs supplied a narrower and less integrated custody path.

## Sources

1. [Statement on the Custody of Crypto Asset Securities by Broker-Dealers](https://www.sec.gov/newsroom/speeches-statements/trading-markets-121725-statement-custody-crypto-asset-securities-broker-dealers) · SEC Division of Trading and Markets · 2025-12-17
2. [Frequently Asked Questions Relating to Crypto Asset Activities and Distributed Ledger Technology — December 2025 update](https://www.sec.gov/rules-regulations/staff-guidance/trading-markets-frequently-asked-questions/frequently-asked-questions-relating-crypto-asset-activities-distributed-ledger-technology) · SEC Division of Trading and Markets · 2025-12-17


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.