The US SEC will issue guidance on cryptocurrency custody services

Goldfinch Finance reports that the U.S. Securities and Exchange Commission (SEC) released an investor guidance announcement on Friday regarding crypto wallets and custody, outlining best practices and common risks associated with different forms of crypto asset storage. The SEC’s announcement lists the advantages and disadvantages of various crypto custody methods, including self-custody versus third-party holding of digital assets. If investors opt for third-party custody, they should understand the custodian’s policies, including whether they will “re-hypothecate” the assets under custody (by lending out assets for profit), or whether service providers will pool customer assets in a single fund rather than holding crypto assets separately in individual customer accounts.