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.