Possession or Control refers to the legal and practical ability to direct the use and disposition of an asset or resource. In the context of digital assets, this typically means having access to the private keys associated with a cryptocurrency wallet, which grants the holder exclusive authority over the funds. Without private keys, effective control is absent. It signifies ultimate authority over digital holdings.
Context
The concept of possession or control is fundamental to understanding ownership in the digital asset space and is a frequent topic in regulatory discussions. News often highlights the importance of self-custody for cryptocurrencies, where users maintain direct control over their private keys, versus relying on third-party custodians. Debates also center on legal definitions of control, particularly concerning decentralized autonomous organizations and their assets, shaping future legal frameworks.
The SEC's no-action relief operationalizes the Custody Rule for RIAs, legitimizing state-chartered trust companies as qualified digital asset custodians under strict controls.
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