Regulators Issue Guidance to Investors on Custody Issues

In an Investor Bulletin, the SEC Office of Investor Education and Advocacy ("OIEA") and FINRA described the various ways in which a customer may hold securities and warned of the risks associated with crypto assets.

They stated that investors may hold their securities in (i) "street name" through a broker-dealer, (ii) by means of a physical certificate or (iii) through direct registration with the issuer. The regulators identified several considerations under each method and warned of the risks of holding crypto assets with unregistered intermediaries.