SEC Releases New Letter Clarifying Enforcement Policy On Digital Asset Settlement Process

The U.S. Securities and Exchange Commission issued a no-action letter on Friday, September 25 announcing that the regulatory body will not penalize any broker-dealer operating an alternative trading system dealing with digital asset securities as long as they adhere to new guidelines.

The no-action letter is designed to streamline the process for alternative trading systems. Broker-dealers used to be required to obtain and maintain physical possession or control of all fully paid or excess margin securities for the account of customers, which could become difficult when dealing with digital assets. 

Now, they now only need to operate with a minimum of $250,000 in capital and inform customers that the broker-dealer operator cannot guarantee or take responsibility for settling trades.

The letter is only a note from the SEC on enforcement policies, rather than a legal change. The announcement demonstrates a growing trend of attention paid by government bodies to clarifying regulation in the crypto space.

By Emily Mason

Related Articles