SEC staff open to advisers using trust companies as crypto custodians

The SEC's Division of Investment Management said it wouldn’t recommend that the agency take action against advisers who use a state trust company as a crypto custodian.

The US Securities and Exchange Commission staff has opened up to allowing investment advisers to use state trust companies to custody cryptocurrency assets.

In a rare no-action letter, the SEC’s Division of Investment Management said on Tuesday that it wouldn’t recommend that the SEC take enforcement action if advisers used state trust companies as a crypto custodian.

Law firm Simpson Thacher & Bartlett had sent a letter to the Division on Tuesday, wanting assurances that registered financial institutions, such as venture capital firms, wouldn’t be subject to enforcement action by the regulator if they custody crypto assets.

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