The United States Securities and Exchange Commission (SEC) has issued a statement confirming the official release of an investor bulletin that serves as guidance for crypto wallets and custody.
In this guide, the commission describes appropriate practices and some common risks associated with various methods of storing cryptocurrencies.
Additionally, the SEC highlighted the pros and cons of different crypto custody methods in the bulletin, comparing self-custody to using a third-party service to manage digital assets for investors.
SEC Release of Investor Bulletin Sparks Excitement in Crypto Industry
The SEC recent decision has sparked excitement among investors in the crypto ecosystem, as it has sparked a sense of protective measures reserved specifically for them. For example, the bulletin states that if investors choose to use a third-party custodian, they should first ensure that they are aware of the custodian’s current policies.
This suggestion meant that investors would need to clearly understand whether they are “rehypothecating” assets, which happens when they decide to lend them, or whether they prefer to integrate client assets into a single pool rather than storing each client’s cryptocurrency in individual accounts.
Meanwhile, in addition to this recommendation, the federal government agency’s guide also describes different types of crypto wallets, discussing the advantages and disadvantages of hot wallets, linked to the Internet, versus cold wallets that function as offline storage.
In the bulletin, the commission argued that hot wallets expose investors to risks such as hacking and cybersecurity threats. For cold wallets, the SEC asserted that they risk irreversible loss due to an existing failure of offline storage, if private keys are compromised, or if a device is stolen.
Analysts noted that the federal government agency’s crypto custody guide suggests a significant shift in the Commission’s regulatory outlook. To support this claim, reports revealed that there was increased resistance towards digital assets and the cryptocurrency industry under the leadership of Gary Gensler, former chairman of the United States Securities and Exchange Commission.
On the other hand, sources close to the matter mentioned that Truth For the Commoner (TFTC) reacted to news regarding the SEC’s guide to crypto custody. In response, the TFTC said, “The same agency that spent years trying to shut down the industry is now teaching people how to use it. »
As the discussion intensified in the crypto industry, Jake Claver, CEO of Digital Ascension Group, which provides services to family offices, argued that the commission provides significant value to crypto investors by enlightening potential crypto holders on safekeeping and certain appropriate practices.
Notably, the watchdog’s guide comes just a day after Paul Atkins, president of the federal government agency, said the traditional financial system was moving toward blockchain technology.
DTCC Gets Green Light from SEC to Start Tokenizing Financial Assets
Reports dated Thursday, December 11 indicate that the Depository Trust and Clearing Corporation (DTCC), a US financial markets infrastructure company that provides clearing, settlement and trade reporting services to financial market participants, has received the green light from the SEC to begin tokenizing financial assets such as stocks, exchange-traded funds (ETFs) and government debt securities.
Regarding this approval, sources familiar with the matter suggested that the commission had sent a valuable “no action” letter to a branch of the DTCC. This letter gave the company the green light to introduce a new service aimed at tokenizing securities.
The DTCC also commented on this announcement. The company announced that the Depository Trust Company (DTC), a subsidiary of DTCC and the world’s largest securities depository, has received approval from a federal government agency to officially launch a new service that will convert real assets held by DTC into tokens in a controlled production environment.
Meanwhile, DTCC intends to tokenize a group of highly liquid assets, including the Russell 1000 Index, exchange-traded funds that track major indexes, and U.S. Treasury bills, bonds and notes. This service should be available to users in the second half of 2026.