- •SEC issues no-action letter on crypto custody
- •State-chartered trusts approved as custodians
- •Positive step for crypto regulatory clarity
In a significant regulatory development, the U.S. Securities and Exchange Commission (SEC) has issued a no-action letter allowing investment advisers to use state-chartered trust companies as qualified custodians for crypto assets. This move provides much‑needed clarity to the digital asset industry, especially for firms managing crypto on behalf of clients.
The no-action letter signals that the SEC will not pursue enforcement action against investment advisers who use certain state-chartered trust companies to hold crypto assets—so long as they meet specific conditions. These conditions are aimed at ensuring investor protection, asset security, and regulatory oversight.
This decision marks a meaningful shift in how traditional financial regulations are adapting to the realities of digital asset management. It also opens up more secure and compliant avenues for storing crypto, a persistent concern for institutional investors.
What This Means for Investment Advisers
Until now, there has been considerable uncertainty about whether state-chartered trust companies could legally serve as custodians for crypto assets under the Investment Advisers Act. With this SEC guidance on qualified custodians for crypto, advisers can now partner with trust companies that are regulated at the state level—offering more flexibility and operational confidence.
This regulatory clarity could accelerate institutional adoption of crypto by giving firms clearer rules to follow. However, it’s important to note that the approval only applies to trust companies that meet specific regulatory standards, such as regular audits, safeguarding procedures, and capital requirements.
TODAY: The SEC issued a no-action letter allowing investment advisers to use state-chartered trust companies as qualified custodians for crypto assets. pic.twitter.com/UmtzQQCeVm
— Cointelegraph (@Cointelegraph) October 1, 2025
A Step Forward for Regulatory Clarity
The SEC’s decision may also influence broader federal regulation of digital assets. While the no-action letter doesn’t represent a full rule change, it reflects growing willingness from regulators to engage with the crypto industry in a more collaborative way.
As more institutional players enter the market, secure and compliant custody solutions are essential. This move helps bridge that gap, offering a path forward while ensuring oversight and investor protection remain strong.