SEC’s New Custody Guidance: What Crypto Investors Need to Know in 2025
The U.S. Securities and Exchange Commission has sharpened its focus on crypto custody, emphasizing the critical role of secure asset storage as digital ownership matures. Institutional adoption and persistent retail participation have elevated custody risks from niche concerns to mainstream vulnerabilities.
Exchange collapses and frozen withdrawals continue to expose systemic weaknesses. The SEC’s guidance signals a pivot toward investor education, acknowledging that custody complexities often stem from misunderstanding rather than negligence. Traditional financial institutions entering the crypto space must now clarify protections—and limitations—for clients.
Private key management remains the linchpin of security. Whether through self-custody or third-party solutions, investors face trade-offs between control and convenience. The market’s evolution demands sharper scrutiny of where and how assets are held.
