SEC Releases Crypto Custody Guidance as Regulators Greenlight Tokenization and Bank Charters
These developments mark a significant shift toward regulatory clarity for cryptocurrency firms and institutional investors.
SEC Issues New Custody Guidelines for Retail Investors
The Securities and Exchange Commission published an Investor Bulletin on December 12, 2025, explaining how retail investors can safely hold crypto assets. The guidance defines custody as the method through which investors store and access private keys—the passcodes that authorize transactions and prove ownership of digital assets.
The bulletin warns that losing a private key results in permanent loss of access to crypto assets. It distinguishes between hot wallets, which remain connected to the internet for convenience, and cold wallets, which use physical…
