self-custody

U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce expressed views on the future regulation of perpetual contracts, prediction markets, and digital assets, with an overall tone that is relatively positive and open.Hester Peirce reviewed the Rule 611 trading transparency proposal that has been in the works for about 20 years, pointing out that the so-called "innovation exemption" mechanism will be intentionally set to be strict and limited, in order to balance market innovation and investor protection.Hester Peirce stated that a clearer regulatory framework should be adopted for new financial products such as tokenized securities, perpetual contracts, and prediction markets, rather than simply imposing restrictions or vague regulations. She also emphasized two core principles: self-custody and financial privacy should become fundamental rights in the future regulatory system and should be incorporated into the subsequent design of digital asset regulations.

According to The Block, executives from hardware wallet manufacturer Trezor stated that the market's trend of fully pushing Bitcoin towards ETFization may pose a long-term risk to the core principles of the crypto industry. According to the company's Chief Business Officer Danny Sanders during the BTC Prague event, the current global crypto user base is approximately 600 million, but only about 10% of users choose to self-custody their assets, with only about 12 to 13 million users using hardware wallets.Since the launch of the U.S. spot Bitcoin ETF in 2024, which has attracted over $53 billion in inflows, institutional allocation of Bitcoin has significantly increased. However, Sanders pointed out that this trend may also weaken users' behavior of directly holding private keys. He believes that self-custody is one of the core attributes of the Bitcoin system, but there are still significant challenges in terms of user experience and security thresholds, leading more users to prefer participating in the market through custodial tools like exchanges or ETFs.Sanders emphasized that the industry should focus on improving the usability and security of self-custody, rather than simply accepting the path of "putting Bitcoin into ETFs." He stated that if the long-term evolution leads to an ETF-dominated holding structure, it would undermine the foundational logic of Bitcoin as a decentralized asset, which could be the "least ideal outcome" for the industry.

According to The Block, MetaMask has launched a non-custodial wallet for AI agents called Agent Wallet, which will support automated trading, perpetual contracts, prediction markets, and liquidity provision on the Ethereum ecosystem and multiple EVM chains and Hyperliquid.Consensys stated that the wallet features mandatory trade simulation, user-defined spending limits, and whitelist rules, and integrates with Blockaid to scan for suspicious transactions. If risks are triggered, user confirmation will be required through 2FA push notifications or email.Eligible and deemed safe transactions will receive up to $10,000 in compensation under MetaMask Transaction Protection. The product is currently available to a limited number of users via command line, with general availability expected for more users this summer.

Cointelegraph posted on the X platform that the governor of South Carolina has signed Bill S.163. The bill protects the self-custody rights of Bitcoin, prohibits discriminatory taxes on Bitcoin, and safeguards the rights of proof-of-work mining in the state.

According to official news, Consensys submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) stating that the SEC's latest interpretive framework for crypto assets may leave regulatory gaps, creating compliance uncertainty for self-custody wallet providers like MetaMask.Consensys requests that the SEC clarify through a targeted safe harbor or other exemption measures that self-custody, user-led interfaces that only support the trading of non-security crypto assets potentially attached to investment contracts do not need to register as broker-dealers.Consensys stated that this move aims to ensure that U.S. users can continue to use open, neutral peer-to-peer blockchain tools.

MARA has launched the MARA Foundation to enhance Bitcoin's defense capabilities against security threats, covering risks such as quantum computing, while expanding the accessibility of self-custody and providing educational resources.

Blockchain.com announced the launch of perpetual contract trading features supported by Hyperliquid in its non-custodial DeFi wallet, allowing users to conduct leveraged trading directly within their own wallets without the need to transfer assets to third-party exchanges, achieving full self-custody.

According to the Wall Street Journal, trading and investment platform eToro announced the acquisition of self-custody crypto wallet provider Zengo, with the specific acquisition amount undisclosed.The acquisition aims to combine eToro's global multi-asset platform and distribution channels with Zengo's non-custodial wallet technology, supporting Zengo's next phase of growth while expanding eToro's digital asset capabilities.

According to official news, Tether has announced the launch of tether.wallet, a self-custody digital wallet that puts Tether's global financial infrastructure directly in the hands of users.With the launch of tether.wallet, this funding distribution network is now open directly to end users for the first time. This release marks a further extension of Tether's efforts in building an open financial system and expands its capabilities into products for everyday use.

A bill in Kentucky, USA, aimed at regulating cryptocurrency ATMs (HB380), has sparked controversy in the industry due to newly added hardware wallet-related provisions. Critics claim that the regulation may "effectively ban self-custody."The bill originally focused on operators of virtual currency kiosks, covering licensing, compliance requirements, transaction limits, and user protection. However, in the latest revision, new provisions require hardware wallet providers to "offer mechanisms and assist users in resetting access credentials," including passwords, PINs, and recovery phrases. Industry insiders point out that this requirement conflicts with the core design of non-custodial wallets. Since private keys and recovery phrases are solely controlled by the user, wallet providers themselves cannot access or recover this information, making the provision technically difficult to implement.Institutions like the Bitcoin Policy Institute have stated that such regulations effectively create a "backdoor" for wallets, undermining the security of crypto assets and potentially forcing users to turn to centralized custodial services. The bill still needs to be reviewed by the state Senate, and the relevant provisions may still be modified or removed.

The U.S. Commodity Futures Trading Commission (CFTC) Market Participants Division issued a "no-action" letter to the self-custody cryptocurrency wallet software developer Phantom Technologies Inc.The letter addresses the software features that Phantom intends to offer and promote, allowing its users to trade through registered futures commission merchants (FCMs), introducing brokers (IBs), and designated contract markets (DCMs). The CFTC stated that, under certain conditions, the Market Participants Division would not recommend enforcement action against Phantom or its related personnel solely for the aforementioned activities without being registered as an introducing broker or its affiliates.

The founder of Binance, CZ, responded to early Bitcoin investor Davinci Jeremie regarding the "zero balance" experience of his multi-signature wallet, stating that if a wallet software upgrade changes the derivation path, it is "very bad and scary," referring to it as "self custody perks."Previously, Davinci pointed out that his 2-of-3 multi-signature wallet was unable to find the original address and balance despite using the correct private key due to a software change in the derivation path, and he ultimately relied on the saved old path to recover it. Several industry participants added that different standards (such as BIP44, BIP84, BIP86) can generate different addresses under the same mnemonic phrase, and if a wallet upgrade is not adequately prompted and migrated, it could lead to users misjudging the risk of asset loss.

Cactus Custody announced that its self-custody MPC (Multi-Party Computation) solution is officially launched. As a custody brand under Matrixport, Cactus holds a Hong Kong Trust TCSP license and has served numerous industry-renowned clients such as RedotPay, Fosun Wealth Holdings, and TDTC.As the Web3 industry matures, institutional clients are increasingly inclined to gain autonomy in custody while demanding the robust security infrastructure provided by third-party custodians. Cactus Custody's MPC solution cleverly bridges this gap by combining cutting-edge Intel SGX TEE (Trusted Execution Environment) with an institution-centric risk management engine.The core security cornerstone of the platform is the advanced MPC-TSS (Threshold Signature Scheme). Through this technology, private key shards are independently generated by multiple parties and jointly managed by devices controlled by Cactus and the clients. This architecture effectively eliminates the risk of "single points of failure," ensuring that no party can unilaterally transfer funds, thereby providing clients with absolute asset sovereignty and peace of mind.Cactus Custody CEO Daniel Lee commented, "Our new MPC solution is designed for institutions that prefer to manage assets directly while requiring secure and compliant infrastructure. By providing a compliant, flexible, and secure platform, we empower clients to flexibly and fully autonomously scale their digital asset businesses."

Self-hosted digital bank Tria has launched the independent nonprofit organization Tria Foundation. The foundation will support research and development of technologies related to routing, execution, and security, provide funding for developer tools, integrations, and ecosystem grants, promote transparent governance and protocol management, and expand partnerships to advance the practical application of self-hosted finance in everyday life.

The Bitcoin trading and lending platform Sats Terminal, backed by Yzi Labs, announced the official integration of the Morpho protocol into its Borrow product, initially supporting the Arbitrum and Base networks. Through Sats Terminal, users can connect to the lending liquidity pools of Morpho and Aave using native BTC as collateral without the need for manual cross-chain transactions or asset wrapping, all while being self-custodial and without KYC, aiming to help users maximize the efficiency of their capital.It is reported that Sats Terminal previously raised $1.7 million in a Pre-Seed round from institutions such as Coinbase Ventures and Draper Associates. With the platform's aggregation layer design, users can discover and match the best lending rates and depths across the network. Sats Terminal plans to launch an SDK and Earn financial products in the future, empowering third-party wallets and Neobanks to directly access native Bitcoin DeFi capabilities, striving to become a one-stop entry point for Bitcoin finance.

GOAT Network announced a partnership with the Latin American fintech platform DitoBanx to launch a Bitcoin yield pilot program in Mexico. This pilot will cover over 100,000 users, allowing them to earn BTC-denominated yields while keeping their Bitcoin fully self-custodied.This collaboration integrates GOAT Network's Safebox product into DitoBanx's regulated mobile application, combining fiat entry and compliance processes with a non-custodial yield structure. The official statement indicated that all deposited assets are principal protected, with yields paid in Bitcoin and supported by GOAT Network's decentralized sorting reward mechanism.GOAT Network stated that this pilot aims to provide emerging market users with a safer and more sustainable Bitcoin yield option. As the pilot progresses, both parties plan to expand this model to other markets operated by DitoBanx.