SEC Staff Requests Comments on the Custody Rule: Non-DVP Trading and Digital Assets

March 21, 2019

Through a March 12, 2019 letter (Letter), Paul Cellupica, Deputy Director and Chief Counsel of the SEC’s Division of Investment Management, on behalf of the Division’s staff invited industry engagement and sought information regarding products and transactions that do not settle on a delivery versus payment (Non-DVP) basis, distributed ledger technology (DLT) and digital assets, particularly in the context of Rule 206(4)-2 under the Investment Advisers Act of 1940 (Custody Rule). The staff cites questions raised in response to its February 2017 Guidance Update on inadvertent custody as one of the drivers for the Letter.

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