The SEC updated its Trading and Markets staff FAQs on Dec. 17, 2025, detailing how broker-dealers can meet custody and capital requirements for crypto-asset securities, including activity tied to bitcoin and ether ETPs.
What the FAQ update changes
The SEC staff reiterated that Rule 15c3-3(b) “possession or control” does not apply to non-security bitcoin held by broker-dealers.
For crypto-asset securities, the staff said a broker-dealer can establish “control” under Rule 15c3-3(c) using qualifying control locations, even when an instrument is not certificated.
The staff also said this approach reduces reliance on the special-purpose broker-dealer (SPBD) safe harbor as the main route to demonstrate control.
Capital treatment for in-kind ETP activity
The SEC staff said it would not object if broker-dealers facilitating in-kind creations and redemptions treat proprietary positions in bitcoin or ether as “readily marketable” for net capital purposes.
That would apply the 20% commodity haircut under Rule 15c3-1 Appendix B.
Cryptoslate claims that a $50 million intraday inventory would imply about a $10 million net capital deduction under that haircut.
Prior guidance withdrawn
The SEC marked the 2019 SEC/FINRA joint staff statement on broker-dealer custody of digital asset securities as withdrawn, narrowing the framework to the updated FAQs.
The FAQ does not explicitly require broker-dealers to hold private keys, but “control” is tied to safeguarding and directing the movement of customer securities at a recognized control location.
Related banking shift
The article noted the Federal Reserve withdrew earlier supervisory letters on April 24, 2025, changing advance-notice expectations for certain crypto-asset and dollar token activities.
