Matt Levine's Money Stuff: The SEC Comes for Crypto Custody

Crypto exchanges mostly create the impression that they segregate customer assets, and then mostly end up with customers who are unsecured creditors in bankruptcy. Even Coinbase, which does seem to keep its customers’ crypto segregated, can’t definitively promise them that they won’t be unsecured creditors in bankruptcy: The legal regimes for crypto custody are just less settled than the regimes for securities custody.