【The US SEC Will Issue Guidelines on Cryptocurrency Custody Services】The U.S. Securities and Exchange Commission (SEC) released an investor guidance announcement on Friday concerning crypto wallets and custody, outlining best practices and common risks associated with different forms of cryptocurrency storage.
The SEC’s announcement lists the advantages and disadvantages of various crypto custody methods, including self-custody and holding digital assets on behalf of clients through third parties.
If investors choose third-party custody, they should understand the custodian’s policies, including whether they will “re-hypothecate” the assets (by lending them out for profit), or if the service provider pools client assets together rather than holding them in separate client accounts.
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The US SEC will issue guidance on cryptocurrency custody services
【The US SEC Will Issue Guidelines on Cryptocurrency Custody Services】The U.S. Securities and Exchange Commission (SEC) released an investor guidance announcement on Friday concerning crypto wallets and custody, outlining best practices and common risks associated with different forms of cryptocurrency storage.
The SEC’s announcement lists the advantages and disadvantages of various crypto custody methods, including self-custody and holding digital assets on behalf of clients through third parties.
If investors choose third-party custody, they should understand the custodian’s policies, including whether they will “re-hypothecate” the assets (by lending them out for profit), or if the service provider pools client assets together rather than holding them in separate client accounts.