{ "id": 49878, "date": "2025-10-01T10:38:35", "date_gmt": "2025-10-01T03:38:35", "guid": { "rendered": "https:\/\/hbbgroup.net\/sec-staff-open-to-advisers-using-trust-companies-as-crypto-custodians\/" }, "modified": "2025-10-01T10:38:35", "modified_gmt": "2025-10-01T03:38:35", "slug": "sec-staff-open-to-advisers-using-trust-companies-as-crypto-custodians", "status": "publish", "type": "post", "link": "https:\/\/hbbgroup.net\/en_us\/sec-staff-open-to-advisers-using-trust-companies-as-crypto-custodians\/", "title": { "rendered": "SEC staff open to advisers using trust companies as crypto custodians" }, "content": { "rendered": "
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The US Securities and Exchange Commission staff has opened up to allowing investment advisers to use state trust companies to custody cryptocurrency assets.<\/p>\n

In a rare no-action letter, the SEC\u2019s Division of Investment Management said<\/a> on Tuesday that it wouldn\u2019t recommend that the SEC take enforcement action if advisers used state trust companies as a crypto custodian.<\/p>\n

Law firm Simpson Thacher & Bartlett had sent<\/a> a letter to the Division on Tuesday, wanting assurances that registered financial institutions, such as venture capital firms, wouldn\u2019t be subject to enforcement action by the regulator if they custody crypto assets<\/a>.<\/p>\n

It\u2019s the second no-action letter<\/a> from the SEC this week, a sign of the agency\u2019s hands-off approach<\/a> to crypto enforcement under the Trump administration, which has promised to ease regulatory oversight of the sector to attract companies and projects to the US.<\/p>\n

Interim step to broader changes<\/h2>\n

SEC staff said in the letter that state trust companies can be used as custodians, provided it has procedures designed to safeguard crypto<\/a>, and the adviser and fund managers follow specific criteria, such as performing due diligence and determining it is in the best interest of their clients.<\/p>\n

Law firm Simpson Thacher & Bartlett requested assurances from the SEC that state trust companies could custody cryptocurrency assets. Source: <\/em>SEC<\/em><\/a><\/figcaption><\/figure>\n

Division of Investment Management director Brian Daly said in a statement shared with Cointelegraph that the letter is an \u201cinterim step to a longer-term modernization of our custody requirements.\u201d\u00a0<\/p>\n

\u201cThis relief unlocks a larger universe of crypto custody options, subject to important safeguards.\u201d<\/p><\/blockquote>\n

The SEC said<\/a> in its regulatory flex agenda that it will propose amendments to custody rules. Under current regulations, the Investment Company Act and the Investment Advisers Act require that client assets be held by a list of qualified custodians, such as banks.<\/p>\n

Peirce, analysts, back change<\/h2>\n

SEC Commissioner Hester Peirce said<\/a> the guidance eliminates the \u201cguessing game\u201d\u00a0 registered advisers and regulated funds have been forced to play while choosing an entity for crypto asset custody, and that it will ultimately \u201cbenefit advisory clients and fund shareholders.\u201d\u00a0<\/p>\n

She added that it covers client crypto assets held by registered advisers or crypto asset investments of regulated funds that are subject to the respective custody provisions, and also tokenized securities.<\/p>\n

\u201cThis moment also presents us with an opportunity to consider whether the custody requirements applicable to registered advisers and regulated funds should be improved and modernized, such as through principles-based rules.\u201d<\/p><\/blockquote>\n

Bloomberg ETF analyst James Seyffart applauded<\/a> the decision in an X post on Tuesday, calling it a \u201ctextbook example of more clarity for the digital asset space. Exactly the sort of thing the industry was asking for over the last few years.\u201d<\/p>\n