SEC Approves State Trust Companies as Qualified Custodians for Crypto Assets

According to BlockBeats, the U.S. Securities and Exchange Commission (SEC) has issued a no-action letter confirming that investment advisors can use state-chartered trust companies as qualified custodians for crypto assets under the Investment Advisers Act of 1940. This decision responds to a formal request from the law firm Simpson Thacher & Bartlett. The move provides long-needed regulatory clarity for digital asset custody, allowing registered investment advisors and regulated funds to legally store and manage cryptocurrencies like Bitcoin and Ethereum through state trust companies, without fear of enforcement actions.