tZERO Digital Asset Custody Approved By US Regulators

Key points:

• tZERO Digital Asset Custody receives U.S. approval, according to a statement released by the firm on Tuesday.
• tZERO’s announcement comes after digital asset firm Prometheum received similar approval last year from the SEC and later from FINRA to allow it to do digital asset securities clearing and settlement services through a similar license.  

tZERO Digital Asset Custody receives U.S. approval, becoming one of two firms licensed to handle digital asset securities, advancing regulatory clarity and innovation.​

tZERO Gains Approval for Digital Asset Custody

tZERO Group Inc. has received approval from U.S. regulators, including the SEC and FINRA, to operate as a special purpose broker-dealer for the custody of digital asset securities. This approval marks tZERO as the second company to be granted such a license, placing the company at the forefront of regulatory innovation in the United States.

Alan Konevsky, executive vice president of tZERO, highlighted the significance of this achievement, emphasizing the company’s leadership in advancing compliant digital asset infrastructure. This approval provides tZERO with a unique opportunity to develop new products and services in the digital asset space, creating a more integrated and regulated environment for the industry.

By ensuring regulatory clarity, tZERO aims to further drive innovation across financial and real-world assets, providing greater security and transparency.

Read more: US Regulators Causing Panic of Crypto Banking Services, Former Solicitors General Accuses

The Regulatory Landscape for Digital Asset Custody

The approval of tZERO follows a similar license granted to Prometheum, reflecting the ongoing dialogue between the SEC and the crypto industry regarding the regulation of digital assets. The SEC has repeatedly urged crypto exchanges to register with the agency, with major platforms such as Coinbase, Binance, and Kraken being sued for allegedly operating without proper registration.

However, many crypto companies have argued that the current regulatory framework makes compliance difficult. The approval of Prometheum has raised some concerns, with industry organizations such as the Blockchain Association questioning the nature of the company’s relationship with the SEC.

Despite these challenges, tZERO’s recent approval shows that the regulatory framework for digital assets is evolving, and that companies that achieve compliance may find themselves in a position to lead the industry.