The SEC has issued recommendations for using crypto wallets.
Date: 2025-12-15 Author: Gabriel Deangelo Categories: BUSINESS
The US Securities and Exchange Commission (SEC) has released a new fact sheet dedicated to crypto wallets and basic rules for the secure storage of digital assets. The document is primarily aimed at retail investors and is explanatory, highlighting the potential risks associated with different cryptocurrency management methods.
In the publication, the SEC provides a general definition of crypto assets and describes how wallets are created and accessed. Particular attention is paid to the mechanism of private keys, which allow for the verification of ownership of funds and the signing of transactions. The regulator emphasizes that the loss of keys or seed phrases effectively means the loss of control over assets without the possibility of recovery.
One of the key topics of the fact sheet was the comparison of hot and cold wallets. Hot, internet-connected solutions offer convenience and quick access to funds, but are subject to higher cyber risks. Cold wallets, on the other hand, store keys offline and are considered more secure, but require additional responsibility and technical training from the user.
The SEC also clarified the differences between custodial and non-custodial wallets. In custodial storage, keys are managed by a third party, such as an exchange or specialized service. This reduces the technical burden on the user, but creates a dependence on the provider's reliability. Non-custodial solutions provide the owner with complete control over the keys, but the investor bears all the consequences of errors or data loss.
A separate section of the document is devoted to the risks associated with intermediaries. The regulator notes that custodial services may use client assets for operational purposes, pool funds, or engage them in additional financial transactions. Therefore, users are advised to review the terms of service and legal structure of such platforms in advance.
Among its practical recommendations, the SEC highlights the need for thorough due diligence of third-party custodians, strict confidentiality of private keys and seed phrases, and refraining from publicly disclosing the size of one's crypto assets. Investors are also advised to exercise caution when interacting with suspicious websites and messages, use strong passwords, and ensure two-factor authentication is enabled for online access.
The publication of this guidance reflects a significant evolution in the SEC's approach to crypto market regulation. Instead of focusing solely on supervisory measures, the Commission is increasingly focusing on educating and improving the financial literacy of market participants, while simultaneously updating the regulatory framework. The SEC has previously noted that a significant portion of initial coin offerings (ICOs) fall outside its direct jurisdiction, which also indicates a more flexible regulatory stance.
