SEC releases new custody guidance for U.S. retail crypto investors
The U.S. Securities and Exchange Commission has published a new educational guide titled “Crypto Asset Custody Basics for Retail Investors.”
The document aims to help individuals better understand how digital assets should be stored, what risks exist in the custody process, and what protections are — or are not — available under U.S. law.
The SEC describes the guide as part of a broader effort to improve retail awareness following a series of high-profile exchange failures and custody disputes across the crypto industry.
Key areas covered in the SEC’s guide
While the full content will be detailed in the coming days, the SEC highlights several core themes:
• the difference between custodial and non-custodial wallets
• risks of holding assets on centralized exchanges
• how private keys determine asset ownership
• lack of federal insurance protections for digital assets
• what to verify before choosing a custodian
• how firms may commingle user assets with their own
• the importance of disaster recovery and key-management procedures
The publication emphasizes that crypto protections differ sharply from those in traditional banking or brokerage environments.
Why the new guidance matters
The SEC has repeatedly stressed that many retail investors misunderstand the custody landscape — particularly the assumption that crypto platforms offer the same protections as regulated brokers.
By issuing this guide, the SEC aims to:
• reduce custody-related losses
• increase transparency around risks
• encourage informed decisions
• reinforce ongoing enforcement and compliance themes
It also signals that retail education is becoming a key regulatory pillar alongside enforcement actions.
Macro Insight: Custody becomes a central topic in U.S. crypto regulation
Custody sits at the intersection of investor protection, market stability and regulatory oversight.
As crypto adoption grows, regulators are focusing on:
• segregation of assets
• operational resilience of custodians
• transparency around key-management models
• risks of exchange-held assets
• standards for broker-dealer custody of digital assets
This guidance suggests the SEC expects custody rules to remain a core regulatory battleground through 2025–2026.
BTCUSA Outlook
We expect this publication to be the first in a series of retail-focused educational releases from the SEC.
As more institutions enter the space and self-custody tools evolve, regulators will push for clearer standards and investor awareness.
In practical terms, the new guide may increase:
• scrutiny of centralized exchanges
• investor migration toward self-custody
• demand for regulated custodial solutions
• clarity ahead of future rulemaking on digital asset safekeeping
Custody will remain a defining topic as the U.S. prepares its next phase of crypto regulation.
