U.S. SEC Allows Crypto Custody at State-Chartered Trust Companies
The U.S. SEC has issued a "no-action letter" allowing SEC-registered advisers and funds to place digital assets in state-chartered trust companies. This includes affiliates of major crypto firms like Coinbase and Kraken.
This decision marks a shift from the previous stance under former SEC Chair Gary Gensler, who sought to restrict which entities could handle crypto for registered advisers.
The current SEC, led by Chairman Paul Atkins, is focusing on creating favorable policies for the crypto industry.
The no-action letter provides short-term compliance relief, stating the SEC won't recommend enforcement against advisers treating a state trust company as a 'bank' for crypto asset custody.
Commissioner Hester Peirce suggested the need for updated rules on custodianship, potentially allowing tech-savvy companies to self-custody.
Democratic Commissioner Caroline Crenshaw opposed the move, arguing it creates uneven regulations across states and ignores federal chartering efforts.
Chairman Atkins plans to issue formal crypto rules soon, while Congress progresses on broader digital asset market regulation.
