The Securities and Exchange Commission publishes crypto custody guide
The SEC published a guide detailing crypto custody basics, best practices, wallet types, and associated risks for investors.Summary
The United States Securities and Exchange Commission (SEC) released an investor bulletin providing a primer on crypto wallet and custody basics, outlining best practices and common risks associated with different storage methods. The guide compares self-custody with third-party custody, advising investors using custodians to understand policies regarding asset rehypothecation or commingling in pooled accounts versus segregated storage. It also details pros and cons of hot wallets (vulnerable to cyber threats) versus cold wallets (risking permanent loss if storage fails or keys are compromised). The crypto community views this publication as a significant, positive shift in the SEC's stance toward digital assets, contrasting with past regulatory hostility. This release followed the SEC's approval for the DTCC to begin tokenizing traditional financial assets.
(Source：Cointelegraph)