Summary
The SEC has not allowed any registered exchange or broker-dealer to list, custody, or trade crypto tokens. They believe that registered institutions cannot work with crypto tokens while dealing with traditional securities.
Key Points
1. The SEC has not permitted any currently registered exchange or broker-dealer to list, custody, or trade crypto tokens.
2. The SEC’s stance is that registered institutions cannot deal in, effect transactions in, maintain custody of, or operate an alternative trading system for traditional securities if they are also working with crypto tokens.
3. This highlights the regulatory challenges faced by institutions looking to operate within the cryptocurrency space while also being compliant with traditional securities regulations.