U.S. SEC Commissioner Questions Dual Custody of Cryptocurrencies, Raises Three Potential Risks for Investors

Caroline Crenshaw, commissioner of the U.S. Securities and Exchange Commission (SEC), has different views on how existing securities laws should protect digital assets. She stated that the concept of custody in federal securities laws is based on the idea of trust. Establishing a dual custody system specifically for cryptocurrencies may increase investor risks, mainly including: 1. Can a separate cryptocurrency custody regulatory system provide the same level of protection as existing standards? 2. How to ensure that the cryptocurrency regulatory system is as robust as existing systems? 3. How to ensure that investors clearly understand the differences in risks between traditional custody institutions and cryptocurrency custody institutions?