The U.S. Securities and Exchange Commission (SEC) has released new guidelines clarifying how existing broker-dealer rules apply to crypto assets and blockchain technology, impacting market participants and investor activity. The SEC’s Division of Trading and Markets published detailed FAQs to address these evolving regulations. Commissioner Hester Peirce, a proponent of regulatory updates, supports the guidance, particularly for custody rules, crypto ETFs in kind, and tokenized securities. The initiative aims to foster innovation while safeguarding investors. These changes impact how institutions manage crypto asset custody and pave the way for new opportunities for cryptocurrency ETFs that can be redeemed in crypto assets rather than cash. These regulatory updates may entice major asset managers who are looking to launch crypto-focused offerings.