The U.S. Securities and Exchange Commission (SEC) has released a FAQ regarding regulations related to crypto assets and distributed ledger technology.

PANews reported on December 18 that, according to an announcement on the website of the U.S. Securities and Exchange Commission (SEC), the SEC's Division of Trading and Markets recently released Frequently Asked Questions (FAQs) regarding activities related to crypto assets and distributed ledger technology (DLT), aiming to provide compliance guidance for market participants. The content covers the following core areas:

1. Brokerage firm liability : Non-securities crypto assets are not subject to Section 15c3-3 of the Securities Exchange Act, but if they are "crypto asset securities," brokers may establish "control" under that section to meet compliance requirements. The SEC has no objection to assets in non-paper form.

2. Client Asset Protection : If the crypto asset is not a product registered under the Securities Act, the SIPC (Securities Investor Protection Corporation) will not provide protection. The SEC recommends that non-securities crypto assets be treated as "financial assets" and placed in a "securities account" through Section 8 of the UCC to strengthen the independence of client assets in the event of liquidation or bankruptcy.

3. Dual asset trading pairs : The National Stock Exchange (NSE) and the Alternative Trading System (ATS) can offer paired trading of “crypto securities/non-securities assets”, provided that regulatory requirements are met and relevant information is disclosed in detail in Form ATS or ATS-N.

4. Transfer Agents and DLT : If a transfer agent provides securities transfer services to a cryptocurrency issuer, and the assets are registered securities under Section 12, it must register with the SEC. The SEC does not object to using a blockchain as the master ledger, provided that all record-keeping and regulatory requirements under federal regulations are met.

5. Clearing and Settlement and ETPs : When operating an ATS, registered brokers can clear client transactions within their own account ledgers; the SEC does not mandate registration as a clearinghouse. Regarding ETPs referencing crypto assets, the SEC does not object to their adherence to the 2006 no-objection letter for commodity ETPs.