Catenaa, Wednesday, October 01, 2025-The US Securities and Exchange Commission has issued a no-action letter allowing registered investment advisers to use state-chartered trust companies as qualified custodians for digital assets.
The decision, outlined in correspondence released Tuesday, marks a shift in how regulators approach cryptocurrency oversight. It permits financial entities that operate under the Investment Advisers Act of 1940 to treat state trust companies as banks for custody purposes.
This means advisers and regulated funds may now hold and manage cryptocurrencies, such as Bitcoin and Ethereum, with fewer legal risks.
The letter followed a request from Simpson Thacher & Bartlett LLP, which asked the agency to confirm that enforcement actions would not be pursued against firms using state trusts. That request was dated September 30.
Industry participants view the move as an opening for more regulated institutions to manage digital assets.
The step also contrasts with the restrictive policies linked to past enforcement efforts, including “Operation Choke Point 2.0,” where agencies such as the Federal Reserve and Treasury limited access for crypto businesses.
Analysts said the SEC’s decision could improve clarity for firms struggling with uncertain custody rules.
State trust companies, which already maintain oversight frameworks, are expected to play a larger role in custody services if they comply with SEC conditions.
Lawmakers in Washington noted that the decision aligns with previous state-level efforts to regulate digital asset supervision.
