On March 12, 2019, the staff of the Division of Investment Management of the US Securities and Exchange Commission (the “Staff” and the “SEC,” respectively) published a letter to the Investment Adviser Association requesting comment from all interested parties regarding custody issues associated with (i) investment adviser and custodial trading practices that are not processed or settled on a delivery-versus-payment (“Non-DVP”) basis and (ii) digital assets— topics that investment advisers and other industry participants have raised issues on in relation to Rule 206(4)-2, the custody rule under the Investment Advisers Act of 1940 (the “Custody Rule” and “Advisers Act,” respectively). This Legal Update provides background on the Custody Rule and discusses Non-DVP trading/custodial arrangements and custody issues related to digital assets.