The U.S. Securities and Exchange Commission’s Office of Investor Education and Assistance issues an investor bulletin dated Dec. 12, 2025, outlining how retail investors can hold and protect crypto assets.
The bulletin explains that wallets do not store crypto itself, but the private keys that control access. It contrasts hot wallets, which are internet-connected and convenient but exposed to cyber risks, with cold wallets, which are offline and generally more secure but vulnerable to loss, damage, or theft. It also stresses safeguarding seed phrases.
The SEC highlights tradeoffs between self-custody and third-party custody, warning that platform hacks, shutdowns, or bankruptcy can cut off access. It urges investors to review fees, security controls, insurance terms, data privacy, and whether custodians lend or commingle customer assets, and to use strong passwords and multi-factor authentication.
