SEC Updates Reporting Guidance for Digital Asset Custodians
SEC Issues New Reporting Guidance For Digital Asset Custody Firms
The US Securities and Exchange Commission has issued new reporting guidance for firms that provide custody services for digital assets, outlining how these companies should approach regulatory disclosures and recordkeeping.
The guidance focuses on the information custody firms are expected to provide to regulators and, where relevant, to clients and investors. In practice, this type of instruction is designed to standardize how digital asset custodians document what they hold, how assets are safeguarded, and how custody-related risks are communicated.
Why it matters: digital asset custody is a central piece of market infrastructure, supporting services such as trading, asset management, and fund administration. Clear reporting expectations can influence how custody providers structure internal controls, audits, and client disclosures, especially as traditional financial institutions and regulated entities expand their involvement in crypto markets.
The update also arrives in a broader environment in which US regulators have been increasing scrutiny on crypto-related intermediaries, including companies that hold customer assets. Custody arrangements have been a recurring focus following several high-profile industry failures in recent years, where unclear asset segregation and weak controls contributed to customer losses.
While the SEC’s new guidance is framed around reporting, it adds to the evolving set of compliance expectations facing digital asset firms that operate within, or seek access to, regulated US markets.
