SEC Recognizes State Trust Companies as Qualified Custodians
The (SEC) recently issued a no-action letter stating that state-regulated trust companies can serve as “qualified custodians” for digital assets.
This decision means registered investment advisers can now custody cryptocurrencies such as Bitcoin and Ethereum with regulated state trust entities, provided they meet strict oversight, capital, and cybersecurity standards.
The action eliminates a few years of uncertainty regarding which institutions would be allowed to custody such assets for clients under US law.
Industry analysts hailed the step as a turning point. James Seyffart of Bloomberg Intelligence called it “a textbook example of more clarity,” noting it removes a major barrier for advisers and regulated funds.
Even though it is not a formal regulation, this position from the SEC provides advisers protection from immediate enforcement action and opens up new forms of institutional exposure to Bitcoin and Ethereum.
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