SEC Tightens Reporting Expectations for Digital Asset Custody
The US Securities and Exchange Commission (SEC) has issued updated staff guidance on public reporting expectations for digital asset depositories and crypto custody arrangements. The guidance centers on how public companies disclose balance sheet treatment and risk factors when they hold crypto assets on behalf of third-party customers.
This new guidance affects custodians, exchanges, digital asset platforms, and any public company handling customer crypto. While the SEC is not creating a new law through this document, it can still influence how companies prepare filings, describe risk, and answer regulator comments.
The industry has learned that custody structure matters after major exchange failures and platform collapses. Public companies cannot simply say they hold crypto safely and leave it there; they need to explain the risks clearly.