SEC Opens Door for Crypto Custody at State-Chartered Trust Companies
- The SEC issued a no-action letter allowing state-chartered trust companies to custody crypto assets for registered advisers and funds.
- This decision could benefit firms like Coinbase and Kraken.
- Chairman Paul Atkins emphasized that establishing clear policies for the crypto industry is a top priority.
- Commissioner Hester Peirce suggested updating rules on custodians, while Commissioner Caroline Crenshaw opposed the no-action approach.
- The SEC’s new stance marks a shift from previous leadership under Gary Gensler, who sought stricter regulations for crypto custody.
The SEC’s recent no-action letter signifies a potential easing of regulatory pressure on crypto custody, allowing state trust companies to act similarly to banks for digital assets. This move is part of an ongoing effort by the SEC to clarify its position on cryptocurrency regulations.
With this new guidance, firms can now manage compliance more effectively, reflecting a significant change in how the SEC views crypto custody compared to past policies under former chair Gary Gensler. (Source)
