US SEC Allows Registered Investment Advisors to Use State Trust Companies to Custody Crypto Assets

Jinse Finance reported that the U.S. Securities and Exchange Commission (SEC) recently issued a no-action letter, allowing registered investment advisers and regulated funds operating under the Investment Advisers Act of 1940 to use state-chartered trust companies as qualified custodians for crypto assets. This move means that these financial institutions can hold and manage crypto assets such as bitcoin and ethereum in the same way they manage cash, providing legal clarity for the digital asset market. Analysts say this is the regulatory clarification the industry has been awaiting for years, and it also marks a further relaxation of the U.S. regulators' stance toward the crypto market.