SEC Staff Defines When Broker-Dealers Have Physical Possession of Crypto Asset Securities

On 17 December 2025, the SEC's Division of Trading and Markets issued staff guidance explaining how broker-dealers can treat crypto asset securities as being in their physical possession when they hold and control the associated private keys. The statement details operational conditions for crypto custody under Rule 15c3-3, distinguishes "physical possession" from "control," and updates prior 2019 guidance on non-custodial models.