SEC Guidance Allows State-Chartered Trust Companies as Crypto Custodians
- The SEC issued guidance permitting investment advisers to use state-chartered trust companies as qualified custodians for crypto assets.
- Advisers must ensure internal controls, regular audits, and disclose risks to clients under the new framework.
- Companies like Coinbase, Ripple, BitGo, and WisdomTree can now act as custodians for registered funds.
- Brian Daly from the SEC emphasized that this clarification was necessary due to inconsistent recognition of state trust companies.
- Advanced protections such as cold storage and encryption are already available to these trust companies.
This guidance provides a clearer path for crypto firms to engage in custody activities, enhancing infrastructure for digital assets within regulated markets.
The SEC’s move allows firms like Coinbase and Ripple to serve as custodians, reflecting the agency’s commitment to integrating crypto into traditional finance frameworks.
