Mike Belshe Claims BitGo Outsmarts the SEC’s Custody Rules
In response to the US Securities and Exchange Commission’s latest investor bulletin on crypto custody, BitGo CEO Mike Belshe has positioned his agency as the solely supplier providing all the custody choices described by the SEC.
It comes solely days after BitGo secured regulatory approval to function as a financial institution, successfully increasing its institutional providers.
BitGo Claims It Can Do What No Other Crypto Custodian Can
In a submit on X (Twitter), Belshe emphasised that the BitGo change permits establishments to mix self-custody and third-party custody right into a single hybrid technique, creating customized threat profiles that no different supplier can replicate.
“BitGo stands alone as the solely supplier delivering an institutional-grade platform for each possibility described by the SEC,” Belshe wrote. “Our shoppers now not have to decide on between safety and management—they’ll have each.”
The SEC bulletin, launched on December 12, 2025, outlined the fundamentals of crypto custody for retail buyers, defining two major fashions:
- Self-custody, the place buyers maintain their personal keys, and
- Third-party custody, the place a professional custodian manages belongings.
While most suppliers require shoppers to choose one mannequin, BitGo permits establishments to make the most of each concurrently.
Under BitGo’s framework, 90% of shopper belongings may be saved in BitGo Trust cold storage, assembly requirements of regulatory compliance, insurance coverage, and safety.
The remaining 10% can reside in self-custody scorching wallets, enabling real-time transactions and operational flexibility.
This hybrid strategy mitigates single factors of failure. If self-custody keys are misplaced, belongings in the belief stay protected, whereas conventional exchanges would threat freezing all funds in the occasion of insolvency.
BitGo Bank & Trust, NA, a federally chartered nationwide financial institution, underpins the platform’s third-party custody answer. Subject to common SOC 1 Type 2 and SOC 2 Type 2 audits, the financial institution helps greater than 1,400 cash and tokens below segregated accounts, backed by a $250 million insurance coverage coverage from Lloyd’s of London syndicates.
According to Belshe, BitGo doesn’t rehypothecate, lend, or commingle shopper belongings, sustaining strict 1:1 custody standards.
For self-custody, BitGo supplies wallets with 2-of-3 Multi-Sig or MPC threshold security. Clients retain two keys whereas BitGo holds one for co-signing, enabling coverage controls with out compromising autonomy.
Together with the third-party belief, these choices are consolidated on a single dashboard, offering shoppers with full transparency, flexibility, and management throughout numerous custody fashions.
BitGo Aligns with SEC Questions While Offering Full Custody Flexibility
BitGo additionally addresses the seven questions the SEC recommends buyers ask when choosing a custodian. These embody:
- Background verification
- Asset protection
- Storage protocols
- Use of belongings
- Privacy protections, and
- Fee buildings.
By answering these questions, BitGo demonstrates that establishments can handle their crypto belongings securely, compliantly, and effectively.
As regulators more and more scrutinize crypto custody, BitGo’s mannequin units a brand new trade benchmark: one that mixes compliance, operational management, and insurance coverage protection on a unified platform.
Belshe’s assertion highlights the rising demand from establishments looking for each the safety of certified custody and the autonomy of self-custody. Such a mixture was beforehand unavailable in a single interface.
The assertions come solely days after BitGo acquired a conditional approval to develop into a nationwide belief financial institution. Others embody Ripple, Fidelity Digital Assets, and Paxos.
In a sector the place asset safety and regulatory compliance typically battle, BitGo’s hybrid mannequin could signify the subsequent evolution of institutional crypto custody.
The submit Mike Belshe Claims BitGo Outsmarts the SEC’s Custody Rules appeared first on BeInCrypto.
