{"id":50638,"date":"2025-10-02T02:31:49","date_gmt":"2025-10-02T02:31:49","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=50638"},"modified":"2025-10-02T02:31:49","modified_gmt":"2025-10-02T02:31:49","slug":"sec-no-action-letter-lets-state-trusts-hold-crypto-for-clients","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=50638","title":{"rendered":"SEC No-Action Letter Lets State Trusts Hold Crypto for Clients"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">The SEC just made a move that could make life a little easier for crypto firms. <\/span><span data-preserver-spaces=\"true\">Its Division of Investment Management <\/span><span data-preserver-spaces=\"true\">put out<\/span><span data-preserver-spaces=\"true\"> a no-action letter <\/span><span data-preserver-spaces=\"true\">saying it\u2019s not going to crack down on<\/span><span data-preserver-spaces=\"true\"> advisers or funds that <\/span><span data-preserver-spaces=\"true\">use<\/span><span data-preserver-spaces=\"true\"> state-chartered trust companies to hold <\/span><span data-preserver-spaces=\"true\">crypto<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">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<h3><span data-preserver-spaces=\"true\">What the No-Action Letter Actually Says<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">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<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">SEC\u2019S DIVISION OF INVESTMENT MANAGEMENT ISSUES NO-ACTION LETTER ALLOWING INVESTMENT ADVISERS TO USE STATE TRUST COMPANIES AS CRYPTO CUSTODIANS WITH PROPER PROCEDURES. <a href=\"https:\/\/t.co\/UXmM1q2yGQ\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/UXmM1q2yGQ<\/a><\/p>\n<p>\u2014 Flux Charts (@FluxCharts) <a href=\"https:\/\/twitter.com\/FluxCharts\/status\/1973372324599701863?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">October 1, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">That means the trust <\/span><span data-preserver-spaces=\"true\">has to<\/span><span data-preserver-spaces=\"true\"> be officially allowed to hold crypto, <\/span><span data-preserver-spaces=\"true\">must<\/span><span data-preserver-spaces=\"true\"> have written protections in place, and <\/span><span data-preserver-spaces=\"true\">needs to<\/span><span data-preserver-spaces=\"true\"> keep client assets <\/span><span data-preserver-spaces=\"true\">fully<\/span><span data-preserver-spaces=\"true\"> separate from its own.<\/span> <span data-preserver-spaces=\"true\">Also<\/span><span data-preserver-spaces=\"true\">, it <\/span><span data-preserver-spaces=\"true\">can\u2019t touch<\/span><span data-preserver-spaces=\"true\"> those assets without <\/span><span data-preserver-spaces=\"true\">clear<\/span><span data-preserver-spaces=\"true\"> permission.<\/span><span data-preserver-spaces=\"true\"> 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<h3><span data-preserver-spaces=\"true\">Why This Matters for Custody<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">The reason this is important is <\/span><span data-preserver-spaces=\"true\">that until<\/span><span data-preserver-spaces=\"true\"> 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<p><span data-preserver-spaces=\"true\">Many crypto-native custodians don\u2019t fit into those old categories. <\/span><span data-preserver-spaces=\"true\">So by<\/span><span data-preserver-spaces=\"true\"> giving state trust companies a chance to step in, the SEC is <\/span><span data-preserver-spaces=\"true\">basically<\/span><span data-preserver-spaces=\"true\"> saying, \u201cOkay, maybe there\u2019s another way to do this.\u201d<\/span><span data-preserver-spaces=\"true\"> It could open the door for more firms to handle custody without <\/span><span data-preserver-spaces=\"true\">bending over backwards<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><strong>DISCOVER: <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/high-risk-high-reward-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">9+ Best High-Risk, High-Reward Crypto to Buy in October2025<\/a><\/strong><\/p>\n<h3><span data-preserver-spaces=\"true\">Safeguards the SEC Requires<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Of course, there are strings attached. Advisers still need to do their homework. <\/span><span data-preserver-spaces=\"true\">The trust company <\/span><span data-preserver-spaces=\"true\">has to<\/span><span data-preserver-spaces=\"true\"> be properly licensed and <\/span><span data-preserver-spaces=\"true\">needs<\/span><span data-preserver-spaces=\"true\"> strong protections in place for handling <\/span><span data-preserver-spaces=\"true\">things like<\/span><span data-preserver-spaces=\"true\"> private keys.<\/span><\/p>\n<div class=\"chart crypto-chart-instance\" id=\"crypto_chart_68dddedb40e17\" data-coin-id=\"btc\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\">\n\t\t\t\t<img id=\"crypto_chart_68dddedb40e17-chart__info-icon-img\"><\/p>\n<div class=\"chart__info-name\" id=\"crypto_chart_68dddedb40e17-chart__info-name\"><\/div>\n<div class=\"chart__info-symbol\" id=\"crypto_chart_68dddedb40e17-chart__info-symbol\"><\/div>\n<\/p><\/div>\n<div class=\"chart__info-current\">\n<div class=\"chart__info-price\" id=\"crypto_chart_68dddedb40e17-chart__info-price\"><\/div>\n<div class=\"chart__info-change\" id=\"crypto_chart_68dddedb40e17-chart__info-change\"><\/div>\n<\/p><\/div>\n<div class=\"chart__info-extra\">\n<div class=\"chart__info-label\">Market Cap<\/div>\n<div class=\"chart__info-marketcap\" id=\"crypto_chart_68dddedb40e17-chart__info-marketcap\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n\t\t\t\t<button class=\"chart__button chart__button--24h\" id=\"crypto_chart_68dddedb40e17-btn-24h\">24h<\/button><br \/>\n\t\t\t\t<button class=\"chart__button chart__button--7d\" id=\"crypto_chart_68dddedb40e17-btn-7d\">7d<\/button><br \/>\n\t\t\t\t<button class=\"chart__button chart__button--30d\" id=\"crypto_chart_68dddedb40e17-btn-30d\">30d<\/button><br \/>\n\t\t\t\t<button class=\"chart__button chart__button--1y\" id=\"crypto_chart_68dddedb40e17-btn-1y\">1y<\/button><br \/>\n\t\t\t\t<button class=\"chart__button chart__button--all-time\" id=\"crypto_chart_68dddedb40e17-btn-all-time\">All Time<\/button>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__container\">\n\t\t<canvas class=\"chart__canvas\" id=\"crypto_chart_68dddedb40e17-cryptoChart\"><\/canvas>\n\t<\/div>\n<\/div>\n<p><span data-preserver-spaces=\"true\">It also needs to clearly agree that it won\u2019t borrow or mix up client assets. All of that has to be written into the contract. <\/span><span data-preserver-spaces=\"true\">On top of that<\/span><span data-preserver-spaces=\"true\">, advisers <\/span><span data-preserver-spaces=\"true\">have to decide<\/span><span data-preserver-spaces=\"true\"> whether using that trust company is <\/span><span data-preserver-spaces=\"true\">actually<\/span><span data-preserver-spaces=\"true\"> a <\/span><span data-preserver-spaces=\"true\">good<\/span><span data-preserver-spaces=\"true\"> move for their clients.<\/span><span data-preserver-spaces=\"true\"> So yeah, it\u2019s flexible, but not a free-for-all.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">Reactions and a Warning from a Commissioner<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Not everyone is throwing a party. <\/span><span data-preserver-spaces=\"true\">While some people in the industry are <\/span><span data-preserver-spaces=\"true\">happy<\/span><span data-preserver-spaces=\"true\"> to finally see the SEC <\/span><span data-preserver-spaces=\"true\">give a little<\/span><span data-preserver-spaces=\"true\"> clarity, others are raising <\/span><span data-preserver-spaces=\"true\">red flags<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Commissioner Caroline Crenshaw came out hard against it. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">She <\/span><span data-preserver-spaces=\"true\">thinks<\/span><span data-preserver-spaces=\"true\"> this <\/span><span data-preserver-spaces=\"true\">skips<\/span><span data-preserver-spaces=\"true\"> the proper process, lacks <\/span><span data-preserver-spaces=\"true\">good<\/span><span data-preserver-spaces=\"true\"> data, and <\/span><span data-preserver-spaces=\"true\">might<\/span><span data-preserver-spaces=\"true\"> even weaken the protections <\/span><span data-preserver-spaces=\"true\">that are supposed to be there<\/span><span data-preserver-spaces=\"true\"> for investors.<\/span><span data-preserver-spaces=\"true\"> Her main point is that this could lead to inconsistent rules, and clients could end up paying the price.<\/span><\/p>\n<p><strong>DISCOVER: <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-1000x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025<\/a><\/strong><\/p>\n<h3><span data-preserver-spaces=\"true\">What This Means for Crypto Firms<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">For crypto firms, this could be a real opening. Especially for those state-chartered trust companies <\/span><span data-preserver-spaces=\"true\">tied to bigger<\/span><span data-preserver-spaces=\"true\"> players. If they can check all the right boxes, they might finally be able to step into the custody game. <\/span><span data-preserver-spaces=\"true\">A lot of<\/span><span data-preserver-spaces=\"true\"> firms that were locked out <\/span><span data-preserver-spaces=\"true\">before could<\/span><span data-preserver-spaces=\"true\"> now have a <\/span><span data-preserver-spaces=\"true\">shot<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> But they\u2019ll still need to bring their A-game and follow everything by the book.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">What to Watch Next<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">So what now? <\/span><span data-preserver-spaces=\"true\">This letter <\/span><span data-preserver-spaces=\"true\">could <\/span><span data-preserver-spaces=\"true\">just<\/span><span data-preserver-spaces=\"true\"> be the first step.<\/span><span data-preserver-spaces=\"true\"> We\u2019ll have to see if the SEC decides to turn this into an official rule. It\u2019ll also be interesting to watch how state trust companies react. Will they invest in better systems and tighten up compliance? <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">And will advisers actually take them up on this path? If the usual custodians stay expensive or slow, we might see more firms take this route. Either way, things could get interesting.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-crypto-to-explode\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">20+ Next Crypto to Explode in 2025\u00a0<\/span><\/a><\/strong><\/p>\n<p><strong><a class=\"general-link\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/span><\/a><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h2>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<ul class=\"nnbtc-key-takeaways__list\">\n        <\/ul>\n<p><\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The SEC no-action letter says advisers and funds can use state-chartered trust companies to hold crypto if certain conditions are met.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        These trusts must be properly licensed, keep client assets fully separate, and get clear permission before accessing funds.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        This opens the door for more crypto-native custodians to step in, offering new options beyond banks and broker-dealers.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Commissioner Caroline Crenshaw criticized the move, saying it skips public debate and could weaken investor protections.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Crypto firms may now explore partnerships with state trusts, but they still need to follow strict safeguards and do due diligence.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\"><br \/>\n    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/span><\/p>\n<\/div>\n<p>    <\/span><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/bitcoin-btc\/sec-no-action-letter-lets-state-trusts-hold-crypto-for-clients\/\">SEC No-Action Letter Lets State Trusts Hold Crypto for Clients<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The SEC just made a move that could make life a little easier for crypto firms. Its Division of Investment Management put out a no-action letter saying it\u2019s not going to crack down on advisers or funds that use state-chartered trust companies to hold crypto. That\u2019s a pretty big deal, especially considering how rigid things [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-50638","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/50638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50638"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/50638\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}