What Regulatory Requirements Often Mandate the Use of Segregated Accounts for Client Funds?

Regulations like the US SEC's Customer Protection Rule (Rule 15c3-3) and similar rules globally mandate that broker-dealers segregate client funds and securities from their own proprietary assets. These rules are designed to protect client assets from the broker's financial failure.

In the crypto space, emerging regulations like MiCA also require crypto asset service providers to maintain clear segregation of client funds.