"We are at the very avant-garde of regulatory innovation in the United States as one of only two broker-dealers entrusted by the regulators to custody digital asset securities," tZero executive vice president Alan Konevsky said in a statement. "We will leverage this unique opportunity, on behalf of the digital asset industry at large, to illustrate how positive regulatory clarity can produce real-world innovation."
Despite the new designation, it took over two years for the body to issue a license. It finally granted approval in early 2023 to Prometheum, a controversial firm held in low regard by much of the crypto sector.
Now, tZero's approval opens the door to another company custodying digital asset securities for its clients under SEC supervision, as well as a plan to offer trading through an affiliated alternative trading system (ATS), similar to Prometheum's model.
The ongoing debate between crypto companies and regulators is whether digital assets like Ethereum and Solana are securities like stocks and bonds, and under the jurisdiction of the SEC, or commodities like gold and oil, and under the jurisdiction of the Commodity Futures Trading Commission (CFTC).
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