- SEC releases new guidelines on crypto custody for investors.
- Focus on self-custody versus third-party options.
- Educates on risks such as rehypothecation.
The U.S. Securities and Exchange Commission’s Office of Investor Education and Assistance released a crypto custody guide for retail investors on December 12, 2025, via sec.gov.
This guide marks a significant step in investor education amid the blockchain integration in finance, aiming to clarify custody practices and protect retail investors in the evolving crypto landscape.
The U.S. Securities and Exchange Commission (SEC) has released a new guide, “Crypto Asset Custody Basics for Retail Investors,” addressing crypto custody concerns. The document provides advice on self-custody, third-party options, and asset protection measures.
Key players in this release include the SEC’s Office of Investor Education and Assistance. SEC Chair Paul Atkins noted the legacy financial system’s move towards blockchain. Guidelines offer clarity on self-custody and third-party strategies.
The guide does not name specific cryptocurrencies but instead addresses broader crypto assets. This move aims at enhancing investor education on critical custodial choices. Investor protection remains a top priority for the SEC.
The bulletin highlights potential financial risks, such as rehypothecation and commingling of assets by third parties. Investors are encouraged to explore different wallet types, including hot vs. cold wallets, to manage their holdings.
The SEC’s guidelines signify a strategic shift from past adversarial stances towards educational efforts in cryptocurrency. The agency seeks to guide retail investors through nuanced custodial choices while ensuring asset safety.
Potential outcomes could include an increase in self-custody practices, as investors gain awareness of associated risks. Historically, trends indicate a growing push towards decentralization and self-governance, aligning with the crypto ecosystem’s evolving landscape.
“The issuing of the ‘Crypto Asset Custody Basics for Retail Investors’ bulletin marks a significant step in our commitment to educating investors as we transition to a blockchain-based financial system.”
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