tZero has obtained registration as a special purpose broker dealer under the oversight of the US Securities and Exchange Commission, which will give the firm the ability to hold digital asset securities for customers.
However, this clashes with the industry’s ongoing legal dispute with the SEC, which argues that most crypto tokens are securities.
tZERO and Prometheum, in order to hold custody of these securities, must treat them as such, despite pushback from the industry and many issuers.
In a statement, tZero CEO David Goone stated that their special purpose broker-dealer status will allow them to offer safe, regulated, and innovative products for issuers, investors, and market participants.
