The U.S. Securities and Exchange Commission (SEC) released a comprehensive guide on Friday for investors regarding crypto wallets and asset custody. The guide outlines fundamental principles of crypto asset custody, compares self-custody with third-party custody, and highlights associated risks. It advises investors to be aware of issues such as asset rehypothecation and commingling of client assets by custodians. The SEC also warns that hot wallets, which are connected to the internet, are vulnerable to hacking and cybersecurity threats, while cold wallets may suffer from permanent asset loss due to device damage, loss, or private key exposure. This move is seen by the crypto community as a significant shift in the SEC's regulatory stance.