
The SEC’s latest statements offer broker-dealers non-binding clarity on crypto custody, alternative trading systems, and risk preparedness in events like blockchain attacks or malfunctions.
In October 2025, the U.S. Securities and Exchange Commission’s Division of Trading and Markets issued new non-binding guidance for broker-dealers on custody of customer crypto securities, including private key protection, contingency planning for events like blockchain malfunctions, 51% attacks, hard forks, and airdrops. The advice extends to tokenized stocks and debt instruments, though the definition of a crypto security remains unsettled. A separate FAQ document addresses operations of alternative trading systems in the crypto sector, focusing on trading and settlement. These releases—spearheaded by Commissioner Hester Peirce’s crypto task force—aim to provide broker-dealers greater regulatory comfort while lacking formal rulemaking authority.