SEC Confirms State-Chartered Trust Companies Can Act as Cryptocurrency Custodians

BlockBeats News, October 1st, the U.S. Securities and Exchange Commission (SEC) has issued a no-action letter, confirming that under the Investment Advisers Act of 1940, investment advisers may use state-chartered trust companies as qualified custodians for crypto assets. The letter was in response to a formal request from the law firm Simpson Thacher & Bartlett.

This move provides much-needed regulatory clarity for digital asset custody, allowing registered investment advisers and regulated funds to custody and manage cryptocurrencies such as Bitcoin and Ethereum through state trust companies in compliance with relevant rules, without the fear of enforcement action. (The Block)