The US SEC has released guidelines for the custody of crypto assets, systematically outlining wallet types and key risks.

Odaily Planet Daily reports that the U.S. Securities and Exchange Commission (SEC) released guidance for investors on crypto wallets and asset custody on Friday, systematically outlining the advantages and risks of different crypto asset storage methods. The guidance compares self-custody and third-party custody models and reminds investors that when choosing third-party custody, they should focus on understanding whether the custodian institution engages in asset rehypothecation and whether client assets are commingled.

The SEC also outlined the key differences between hot and cold wallets: hot wallets, being connected to the internet, face higher risks from hacking and cybersecurity; while cold wallets reduce the risk of online attacks, damage to storage devices, theft, or loss of private keys can lead to permanent asset loss. Market analysts believe this guidance indicates a significant shift in the SEC's regulatory stance towards the crypto industry. The previous day, SEC Chairman Paul Atkins stated that the traditional financial system is rapidly migrating to on-chain mechanisms, and the SEC had approved the DTCC to begin exploring the tokenization of assets such as stocks, ETFs, and government bonds. (Cointelegraph)