SEC issues guidance on crypto asset custody for retail investors
Key Takeaways
- The SEC issued guidance explaining custody options and security tips for retail crypto asset investors.
- Investors must carefully choose between self-custody and third-party custody, each with distinct risks and responsibilities.
The SEC’s Office of Investor Education and Assistance has released an Investor Bulletin to educate retail investors on crypto asset custody options.
The bulletin covers the essentials of crypto wallets, including the distinction between hot and cold wallets, as well as the importance of securing private keys and seed phrases. It also provides guidance to help investors choose custody methods and outlines factors investors should weigh when deciding how to store their crypto assets.
In the post–Gary Gensler era, the SEC has intensified efforts to bring greater oversight to digital asset markets, seeking to balance innovation with customer protection.
SEC Chair Paul Atkins has stated that most crypto assets do not qualify as securities, distancing the agency from prior interpretations. His agenda emphasizes self-custody, the development of super-apps that integrate multiple services, and reshoring crypto distribution activities to the US.
Recent developments include the approval of in-kind redemptions for crypto ETPs and the establishment of generic listing standards for spot crypto products.
The Enforcement Division has dropped multiple crypto probes, indicating a reduced emphasis on enforcement actions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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