Digital Asset Securities

Providing additional clarity on the role of an alternative trading system (ATS) in the settlement of digital asset security trades, the staff of the SEC’s Division of Trading and Markets issued a no-action letter to FINRA on September 25, 2020.  In brief, the SEC staff endorsed a three-step settlement process for digital asset securities held in a third-party’s custody if certain customer-protection conditions are met.
Continue Reading SEC Staff Provides Guidance on Non-Custodial Digital Asset Settlement

On July 8, 2019, the SEC’s Division of Trading and Markets and FINRA’s Office of General Counsel issued a Joint Statement on Broker-Dealer Custody of Digital Asset Securities. The Joint Statement discusses several provisions of the federal securities laws applicable to registered broker-dealers that may be implicated when such entities custody digital asset securities.
Continue Reading SEC and FINRA Staffs Release Guidance on Custody of Digital Asset Securities