📊 SEC’s Shift Toward Crypto Custody Clarity
In a rare no-action letter, the U.S. Securities and Exchange Commission (SEC) said it won’t recommend enforcement against investment advisers who use state trust companies to custody crypto assets.
The move, announced by the Division of Investment Management, marks a major step toward easing custody rules for digital assets under the Trump administration’s push to make the U.S. a crypto hub.
🔑 What the New Guidance Means
The SEC stated that advisers can rely on state trust companies as custodians if they follow safeguards, such as:
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Conducting due diligence ✅
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Ensuring client best interest ✅
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Following strict security procedures ✅
Brian Daly, director of the Division, called the letter an “interim step to modernizing custody requirements,” unlocking broader options for crypto asset custody.
🗣️ Support From Regulators and Analysts
SEC Commissioner Hester Peirce praised the decision, saying it eliminates the “guessing game” advisers previously faced and will benefit both clients and funds. She also highlighted its coverage of tokenized securities and crypto asset investments.
Crypto analysts welcomed the move:
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James Seyffart (Bloomberg) called it a “textbook example of clarity.”
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Marty Party predicted it will lead to more custodians and faster crypto adoption.
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Sen. Cynthia Lummis applauded the recognition of state-chartered trust companies, aligning with Wyoming’s early leadership in this space.
⚠️ Criticism From SEC’s Democrat Commissioner
Not everyone agrees. Commissioner Caroline Crenshaw criticized the letter, arguing that rule changes should come through public processes. She warned the move could create unfair advantages for state-chartered trusts over firms seeking national charters via the OCC.
Crenshaw stressed that deciding who qualifies as a custodian is a “high-stakes trust issue”, and shortcuts may undermine the system.
🎯 What’s Next for Crypto Custody?
The SEC has already signaled plans to propose broader custody rule amendments. This letter suggests regulators are moving toward principles-based, modernized custody standards — a change many in crypto have been demanding for years.
If adopted, the shift could encourage wider institutional adoption, giving advisers more secure and regulated ways to custody digital assets.
👉 Stay updated on regulatory changes shaping crypto adoption at CryptoDice News
