The SEC allows registered investment advisors to use state trust companies to custody encryption assets.

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[SEC Allows Registered Investment Advisors to Use State Trust Companies to Custody Crypto Assets] The U.S. Securities and Exchange Commission (SEC) recently issued a no-action letter that permits registered investment advisors and regulated funds operating under the Investment Advisers Act of 1940 to use state-chartered trust companies as qualified custodians for digital assets. This move means that these financial institutions can hold and manage Bitcoin, Ethereum, and other crypto assets just like they do with cash, providing legal clarity for the digital asset market. Analysts say this is exactly the regulatory clarity that the industry has been waiting for, while also marking a further easing of U.S. regulatory attitudes toward the crypto market.

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