SEC No-Action Letter Creates Opening for More Firms to Serve as Crypto Custodians

In brief

  • The SEC will not take enforcement actions against advisors and other entities for using state-chartered as crypto custodians.
  • This letter could lead to a potential opening for a greater number of organizations to serve as custodians for digital assets.
  • In July, Chair Paul Adkins unveiled “Project Crypto, an SEC initiative to dramatically lower regulatory burdens.

The U.S. Securities and Exchange Commission said in a letter on Tuesday that it did not plan to take action against registered investment advisors, issuers of crypto funds, and other entities for using state-chartered trusts to hold digital assets.

The updated guidance, a response from the SEC’s Division of Investment Management to a query filed by lawyers…

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