SEC Commissioner Suggests State-Chartered Trust Companies as Qualified Crypto Custodians

According to PANews, U.S. Securities and Exchange Commission (SEC) Commissioner Mark T. Uyeda recently addressed a roundtable on crypto asset custody, highlighting that federal regulators currently permit national banks to act as trustees for crypto assets. Given the historical precedent of allowing state-chartered banks to compete with federally chartered banks, Uyeda proposed that the SEC should consider recognizing state-chartered trust companies as qualified crypto custodians. Uyeda also suggested that the SEC could enhance competition by revising or eliminating the 'special purpose broker-dealer' framework. This could involve providing interim guidance on how firms can custody non-security crypto assets, crypto asset securities, and traditional securities while adhering to capital and customer protection rules. Ultimately, these guidelines could be incorporated into amendments to existing regulations.