The SEC has updated its crypto asset FAQs, providing guidance on how broker-dealers like Morgan Stanley and Goldman Sachs can meet custody and capital requirements for crypto asset securities. The update, dated December 17, 2025, addresses the application of the framework to Bitcoin and Ethereum ETF activity. According to the announcement, the SEC staff clarifies that Rule 15c3-3(b) does not apply to non-security crypto held by broker-dealers. For crypto asset securities, a broker-dealer can establish "control" under Rule 15c3-3(c) by using qualifying control locations. The SEC also withdrew its 2019 joint staff statement with FINRA on broker-dealer custody of digital asset securities, narrowing the focus to the updated FAQ framework. The updated guidance emphasizes contract language, key governance, and the audit trail for demonstrating control over time.

The SEC has updated its crypto asset FAQs, providing guidance on how broker-dealers like Morgan Stanley and Goldman Sachs can meet custody and capital requirements for crypto asset securities. The update, dated December 17, 2025, addresses the application of the framework to Bitcoin and Ethereum ETF activity. According to the announcement, the SEC staff clarifies that Rule 15c3-3(b) does not apply to non-security crypto held by broker-dealers. For crypto asset securities, a broker-dealer can establish "control" under Rule 15c3-3(c) by using qualifying control locations. The SEC also withdrew its 2019 joint staff statement with FINRA on broker-dealer custody of digital asset securities, narrowing the focus to the updated FAQ framework. The updated guidance emphasizes contract language, key governance, and the audit trail for demonstrating control over time.