CoinVoice has recently learned that the U.S. Securities and Exchange Commission (SEC) released guidelines for investors regarding cryptocurrency wallets and asset custody on Friday local time. The guidelines systematically outline the advantages and risks of different methods of storing cryptocurrency assets. It compares self-custody and third-party custody models and reminds investors to focus on understanding whether the custodian has practices such as asset rehypothecation and whether client assets are mixed. The SEC also introduced the main differences between hot wallets and cold wallets: hot wallets, being connected to the internet, face higher risks of hacking and cybersecurity issues; cold wallets can reduce online attack risks, but if the storage device is damaged, stolen, or if the private key is lost, it may lead to permanent loss of assets. Market participants believe that this guideline shows a significant shift in the SEC's regulatory attitude toward the cryptocurrency industry. The day before, SEC Chairman Paul Atkins stated that the traditional financial system is accelerating its migration to the chain, and the SEC has also approved the DTCC to explore the tokenization of assets such as stocks, ETFs, and government bonds. [Original link]
