{"id":101442,"date":"2025-10-01T23:55:08","date_gmt":"2025-10-01T23:55:08","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=101442"},"modified":"2025-10-01T23:55:08","modified_gmt":"2025-10-01T23:55:08","slug":"sec-no-action-letter-lets-state-trusts-hold-crypto-for-clients","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=101442","title":{"rendered":"SEC No-Action Letter Lets State Trusts Hold Crypto for Clients"},"content":{"rendered":"

The SEC just made a move that could make life a little easier for crypto firms. <\/span>Its Division of Investment Management <\/span>put out<\/span> a no-action letter <\/span>saying it\u2019s not going to crack down on<\/span> advisers or funds that <\/span>use<\/span> state-chartered trust companies to hold <\/span>crypto<\/span>.<\/span><\/p>\n

That\u2019s a pretty big deal, especially considering how rigid things have been up until now. It gives firms more options for storing digital assets without worrying about stepping on a regulatory landmine.<\/span><\/p>\n

What the No-Action Letter Actually Says<\/span><\/h3>\n

Here\u2019s what the letter actually lays out. If a state trust company is properly set up to handle crypto, and it follows a list of rules, then advisers and funds can treat it the same way they would a traditional bank when it comes to custody. <\/span><\/p>\n

SEC\u2019S DIVISION OF INVESTMENT MANAGEMENT ISSUES NO-ACTION LETTER ALLOWING INVESTMENT ADVISERS TO USE STATE TRUST COMPANIES AS CRYPTO CUSTODIANS WITH PROPER PROCEDURES. pic.twitter.com\/UXmM1q2yGQ<\/a><\/p>\n

\u2014 Flux Charts (@FluxCharts) October 1, 2025<\/a><\/p>\n\n

That means the trust <\/span>has to<\/span> be officially allowed to hold crypto, <\/span>must<\/span> have written protections in place, and <\/span>needs to<\/span> keep client assets <\/span>fully<\/span> separate from its own.<\/span> Also<\/span>, it <\/span>can\u2019t touch<\/span> those assets without <\/span>clear<\/span> permission.<\/span> The letter doesn\u2019t rewrite any laws, though. It just says the SEC staff won\u2019t go after you if you play by these rules.<\/span><\/p>\n

Why This Matters for Custody<\/span><\/h3>\n

The reason this is important is <\/span>that until<\/span> now, the options for storing crypto under the official rules have been pretty limited. Most firms had to work with banks or broker-dealers, which doesn\u2019t always work well when you\u2019re dealing with digital assets. <\/span><\/p>\n

Many crypto-native custodians don\u2019t fit into those old categories. <\/span>So by<\/span> giving state trust companies a chance to step in, the SEC is <\/span>basically<\/span> saying, \u201cOkay, maybe there\u2019s another way to do this.\u201d<\/span> It could open the door for more firms to handle custody without <\/span>bending over backwards<\/span>.<\/span><\/p>\n

DISCOVER: 9+ Best High-Risk, High-Reward Crypto to Buy in October2025<\/a><\/strong><\/p>\n

Safeguards the SEC Requires<\/span><\/h3>\n

Of course, there are strings attached. Advisers still need to do their homework. <\/span>The trust company <\/span>has to<\/span> be properly licensed and <\/span>needs<\/span> strong protections in place for handling <\/span>things like<\/span> private keys.<\/span><\/p>\n

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