SEC releases new guidelines for crypto custody, signaling a shift in regulatory attitude

The U.S. Securities and Exchange Commission (SEC) recently issued an investor notice regarding crypto wallets and asset custody, marking a proactive shift by this previously tough regulator towards the crypto industry. The agency is now educating the public on how to securely store digital assets. This guide details the risk characteristics of different custody methods and the key information investors need to understand when choosing service providers.

From “Closure” to “Education” - A Clear Shift in Regulatory Approach

This move by the SEC has caused ripples within the industry. Many observers see it as an important signal of a policy adjustment—during former Chair Gary Gensler’s tenure, the SEC’s attitude towards digital assets was relatively indifferent. Now, under new leadership with Chairman Paul Atkins, the agency is actively promoting crypto asset storage knowledge to investors.

In this notice, the SEC emphasizes the trade-offs between self-custody and third-party custody. Regarding third-party custody, the guide specifically reminds investors to clearly understand the custodian’s policies, especially concerning rehypothecation clauses—that is, whether the custodian will re-lend client assets for profit or store each customer’s crypto independently. This detail is crucial for investors as it directly relates to actual control over assets and risk exposure.

Hot Wallets vs Cold Wallets - Pros and Cons

The guide also provides a detailed comparison of two mainstream wallet types. Hot wallets connected to the internet offer convenience but are more vulnerable to hacking; cold wallets stored offline are more secure, but losing the private key, having the device stolen, or experiencing storage failure could lead to irreversible asset loss. The SEC advises investors to weigh these risks based on their individual circumstances.

Interestingly, the grassroots crypto advocacy organization “True Bitcoin Fund” (TFTC) made a somewhat sarcastic comment: “The same organization has wanted to shut down this industry for years, and now it’s teaching people how to use it.” This reflects the complex emotions within the crypto community regarding the regulatory shift.

Digital Ascension Group CEO Jack Claver offered a more positive view, believing that the SEC’s enlightenment of potential crypto holders injects positive energy into the industry and helps improve compliance and investor protection.

DTCC Approved to Launch Asset Tokenization, Operations Expected in 2026

Following the release of this guide, another major news broke: the Depository Trust & Clearing Corporation (DTCC) has received formal regulatory approval to begin pilot projects for financial asset tokenization.

According to a report on December 11, the SEC issued a “no-action letter” to DTC, a subsidiary of DTCC, granting permission to launch new tokenization services. DTCC plans to initially tokenize exchange-traded funds related to the Russell 1000 index, U.S. Treasury securities, and various bonds within a controlled environment, with the service expected to be officially open to the market in the second half of 2026.

The significance of this approval lies in the fact that traditional financial market infrastructure is officially opening its doors to blockchain technology. On the same day as the announcement, Paul Atkins also shared the view that the traditional financial system is evolving towards blockchain, further confirming that this shift is not an isolated event but part of a systemic regulatory adjustment.

From investor guidance to asset tokenization pilots, the signals sent by the SEC in a short period are clear and powerful: crypto and blockchain technology are no longer objects of rejection but are gradually being integrated into the mainstream financial ecosystem.