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US SEC Releases Cryptocurrency Asset Custody Guidelines, Systematically Analyzing Wallet Types and Major Risks
Summary: According to reports, the US Securities and Exchange Commission (SEC) released cryptocurrency wallet and asset custody guidelines for investors on Friday local time, systematically analyzing the advantages and risks of different cryptocurrency storage methods. The guidelines compare self-custody with third-party custody models, and remind investors that when choosing third-party custody, they should focus on understanding ...
According to reports, the US Securities and Exchange Commission (SEC) released cryptocurrency wallet and asset custody guidelines for investors on Friday local time, systematically analyzing the advantages and risks of different cryptocurrency storage methods. The guidelines compare self-custody with third-party custody models, and remind investors that when choosing third-party custody, they should focus on understanding whether the custodian institution engages in asset rehypothecation, commingles customer assets, and other situations.
The SEC also introduced the main differences between hot wallets and cold wallets: hot wallets, being connected to the internet, face higher risks of hacking and network security; while cold wallets can reduce online attack risks, if the storage device is damaged, stolen, or the private key is lost, it may lead to permanent loss of assets. Market participants believe that these guidelines show a clear shift in the SEC's regulatory attitude towards the cryptocurrency industry. The day before, SEC Chairman Paul Atkins stated that the traditional financial system is accelerating its migration to the blockchain, and the SEC has also approved DTCC to explore tokenization of assets such as stocks, ETFs, and government bonds.
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Link: US SEC Releases Cryptocurrency Asset Custody Guidelines, Systematically Analyzing Wallet Types and Major Risks [Copy]
