SEC, FINRA Issue Explanation of Crypto Custodian Approval Delay

The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) believe there are a number of questions they need to address before they can approve crypto companies’ applications to become broker-dealers.

In a joint statement Monday, the SEC Division of Trading and Markets and FINRA’s office of general counsel outlined the different factors that the agencies consider when determining whether to approve a broker-dealer application by a company which touches digital assets, including custody and whether the assets are treated as securities under the Securities Investor Protection Act (SIPA) of 1970.


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