It is the regulator of capital markets in the United States, an official bulletin for investors on the custody of cryptocurrencies on December 12, directed at individual investors.
The document, in an objective and educational style, explains how the main cryptocurrency storage models work and the risks associated with each of them, without introducing new rules or regulatory obligations 📄
🔑 The guidance revolves around the concept of cryptocurrency custody, that is, how investors retain their digital assets and access them. The Securities and Exchange Commission emphasizes that digital wallets (wallets, or software, or access devices) do not store the cryptocurrency assets themselves, but the private keys that allow for their transfer on the blockchain (blockchain) 🌐
📌 The newsletter distinguishes between the main custody models. In the self-custody model, the investor retains direct control over the private keys, ensuring complete independence, but it also transfers full responsibility for security, storage, and recovery.
In third-party custody services, platforms or specialized service providers hold the keys on behalf of the client, which offers convenience but requires consideration of the custodian's governance, security, and internal policies 👀
🛡️ The text also discusses the difference between hot wallets (online 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, warning that losing the private key or recovery phrase may lead to 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, and points to an important shift in regulatory discourse. The focus is shifting from strictness to incorporating practical financial education, recognizing that custody decisions are a fundamental part of risk management in the cryptocurrency market ⚡️
#FOMCWatch #SECApprov #SECCryptoAccounting #SEC
