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On July 8, 2019, the U.S. SEC and FINRA announced the immediate withdrawal of a joint statement regarding the custody of digital asset securities. This retraction clarifies that the earlier guidance does not carry legal weight or impose new obligations, and has not been formally approved by the SEC. It reflects staff views only and is not enforceable. For further inquiries, contact details for SEC and FINRA staff are provided. This move emphasizes the SEC's position that existing laws remain unchanged regarding digital asset custody.
Statement Summary
On July 8, 2019, the staffs of the U.S. SEC's Division of Trading and Markets and the FINRA's Office of General Counsel announced the withdrawal of a Joint Staff Statement concerning broker-dealer custody of digital asset securities, effective immediately.
This retraction indicates that the previous joint guidance has no legal bearing and does not modify existing laws or create new obligations.
For further assistance, contacts for both the SEC and FINRA are provided. It is important to note that the statement reflects the views of the staff and has not been formally approved or disapproved by the SEC, emphasizing its lack of legal force or effect.
Original Statement
Division of Trading and Markets, U.S. Securities and Exchange Commission (link) Office of General Counsel, Financial Industry Regulatory Authority, Inc.
On July 8, 2019, the staffs of the Division of Trading and Markets (“Division”) and the Office of General Counsel of the Financial Industry Regulatory Authority, Inc. (“FINRA”) issued a joint statement regarding broker-dealer custody of digital asset securities.
The staffs of the Division and the FINRA are withdrawing, effective immediately, the Joint Staff Statement.
To contact Commission staff for assistance, please visit the Commission’s Crypto Task Force webpage or contact Michael Macchiaroli, Associate Director, at (202) 551-5525, or Raymond Lombardo, Assistant Director, at (202) 551-5755.
To contact FINRA staff for assistance, please visit FINRA’s Crypto Assets webpage or contact Tom Kimbrell, Associate General Counsel, at (202) 728-6926.
This statement represents the views of the staff of the Division of Trading and Markets. It is not a rule, regulation, or statement of the U.S. Securities and Exchange Commission (“Commission” or “SEC”), and the Commission has neither approved nor disapproved its content. This statement, like all staff statements, has no legal force or effect: it does not alter or amend applicable law, and it creates no new or additional obligations for any person.
Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities, Division of Trading and Markets, U.S. Securities and Exchange Commission and Office of General Counsel, Financial Industry Regulatory Authority (Jul. 8, 2019) (available at SEC.gov | Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities).