SEC publishes Digital Asset Custody Management Guide—Detailed explanation of custody risks and storage methods

The U.S. Securities and Exchange Commission (SEC) has officially announced a comprehensive investor guide on secure storage methods for cryptocurrencies. The release of these guidelines marks an important step in clarifying the specific risks and opportunities investors face when managing digital assets.

New Options for Cryptocurrency Custody—Comparison of Self-Custody and Third-Party Services

The information published by the SEC presents investors with two main custody methods. One is self-custody, where investors manage their private keys themselves. The other involves asset management through a third-party custodian.

When using third-party services, there are important considerations investors should verify in advance. In particular, whether the custodian re-hypothecates assets (uses them for lending) and whether they adopt individual account custody or pooled custody. These choices significantly impact the security and liquidity of client assets.

Hot Wallets vs Cold Wallets—Different Risk Profiles

The SEC’s guidelines detail the security characteristics of different wallet types. Internet-connected hot wallets offer convenience but are exposed to hacking and cyberattack risks.

In contrast, cold wallets, which enable offline storage, are protected from network threats but pose risks of irrecoverable loss if private keys are lost or devices are stolen. Investors need to choose the optimal storage method based on their risk tolerance and convenience needs.

Industry Reactions—Indications of a Shift in Oversight Stance

Several analysts point out that the SEC’s new guidelines represent a significant change in the stance of regulatory authorities. Under former Chair Gary Gensler, a strict attitude was maintained toward the industry.

Industry observers have made interesting comments about this shift. Truth For the Commoner (TFTC) remarked, “The same agency that pushed the industry out for years is now dedicated to educating users.” Jake Claber, CEO of Digital Ascension Group, which provides services for family offices, emphasizes the value of the SEC raising awareness among potential crypto holders about custody and best practices.

Notably, this guide was published shortly after current Chair Paul Atkins stated that “the traditional financial system is transitioning to blockchain technology.” This timing symbolizes a strategic shift by the authorities.

DTCC—Making New History with Asset Tokenization

On December 11, another significant announcement was made. The Depository Trust and Clearing Corporation (DTCC), which handles clearing and settlement infrastructure for financial markets, received SEC approval for tokenizing financial assets.

This approval was granted in the form of a SEC “no-action” letter, officially permitting DTCC’s subsidiary, the Depository Trust Company (DTC), to launch a new service converting real assets into tokens.

Assets to be Tokenized and Service Launch Timeline

According to DTCC’s plans, tokenization will target high-liquidity assets such as Russell 1000 index-tracking ETFs, U.S. Treasuries, and major indices. These are expected to be managed within a blockchain environment.

The service is scheduled to begin user access in late 2026, potentially bringing unprecedented scale to the transformation of financial markets.

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