2025-12-15 13:38:02

In third-party custody services, platforms or specialized service providers hold the keys on behalf of the client, providing convenience but requiring consideration of the custodian's governance, security, and internal policies 👀

🛡️ The text also discusses the difference between hot wallets (internet-connected wallets) and cold wallets (offline wallets). The U.S. Securities and Exchange Commission emphasizes that each model involves different levels of convenience and operational risks, and warns that losing the private key or recovery phrase could result in permanent loss of access to the assets ⚠️

📍 This post comes at a time when investment in digital assets is experiencing increasing interest from individual investors, indicating a significant shift in regulatory discourse. The focus is moving from strictness to integrating practical financial education, recognizing that custody decisions are an essential part of risk management in the cryptocurrency market ⚡️

#FOMCWatch #SECApprov #SECCryptoAccounting #SEC
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BasheerAlgundubi

2025-12-15 13:36:37

The U.S. Securities and Exchange Commission (SEC), the regulatory authority for capital markets in the United States, issued an official investor alert on cryptocurrency custody on December 12, directed at individual investors.

The document, presented in an objective and educational manner, explains how major cryptocurrency storage models work and the risks associated with each, without establishing new rules or regulatory obligations 📄

🔑 The guidance focuses on the concept of cryptocurrency custody, which refers to how investors hold and access their digital assets. The SEC emphasizes that digital wallets (wallets, or programs, or access devices) do not store the cryptocurrencies themselves, but rather the private keys that enable their transfer on the blockchain (blockchain) 🌐

📌 The bulletin differentiates between major custody models. In the self-custody model, the investor retains direct control over the private keys, ensuring complete independence, but also assumes full responsibility for security, storage, and recovery.

#FOMCWatch #SECApprov #SECCryptoAccounting #SEC

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