The U.S. Securities and Exchange Commission (SEC) has released a new investor guide focused on crypto wallets and the custody of digital assets. Published on Friday, the document is designed as an accessible resource for retail investors and outlines the core principles of safely managing cryptocurrencies, wallet types, and the most common risks associated with their use.

According to the SEC, the guide is a “good-faith” educational material rather than a regulatory action. Still, it carries strong symbolic weight, signaling a notable shift in how the U.S. regulator approaches crypto.

Self custody versus third party custody

One of the guide’s central themes is the distinction between self-custody of cryptocurrencies and entrusting digital assets to a third party, such as an exchange or a specialized custodian. The SEC emphasizes that each option comes with its own benefits and trade-offs, which investors should understand before making a decision.

When using third-party custody, investors are encouraged to examine service terms closely, including whether assets are rehypothecated or commingled instead of being held in segregated accounts.

Hot wallets and cold wallets. Convenience versus security

The document also explains the difference between hot wallets and cold wallets. Hot wallets are connected to the internet and offer fast, convenient access, but they carry higher exposure to hacking and cyber threats.

Cold wallets operate offline and are generally considered more secure against online attacks. However, the SEC notes that they are not risk-free, citing potential permanent loss due to hardware failure, theft, or compromised private keys.

A shift in the SEC’s crypto stance

Many in the crypto community view the release as a meaningful change in tone from the SEC, which under former Chair Gary Gensler was widely seen as hostile toward cryptocurrencies.

“The same agency that tried to destroy the industry for years is now teaching people how to use it,” commented the Truth For The Commoner (TFTC) account. Jake Claver, CEO of Digital Ascension Group, added that the SEC is delivering significant value by educating investors on custody best practices.

Traditional finance moves onchain

The timing of the guide aligns with broader changes in the U.S. financial system. Just a day earlier, SEC Chair Paul Atkins stated that traditional financial infrastructure is gradually moving onchain, onto Blockchain.

On Thursday, the SEC also approved plans by the Depository Trust and Clearing Corporation (DTCC) to begin tokenizing financial assets, including stocks, ETFs, and U.S. Treasuries. The move underscores the growing integration of digital assets and Blockchain technology into mainstream finance.

Sources:

https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/crypto-asset-custody-basics-retail-investors-investor-bulletin-0

https://x.com/TFTC21/status/1999870257717223430

https://x.com/beyond_broke/status/1999891763432185876

https://x.com/SECPaulSAtkins/status/1999248667937841188

https://www.businesswire.com/news/home/20251211706270/en/DTCC-Authorized-to-Offer-New-Tokenization-Service-Paving-the-Way-to-Tokenized-DTC-Custodied-Assets