SEC expands scope of qualified crypto custodians

The U.S. Securities and Exchange Commission (SEC) will now permit state-chartered trust companies to be recognized as qualified custodians for cryptocurrencies, Eleanor Terrett, host of Crypto in America, reported on X. The move is expected to resolve regulatory uncertainty in the custody market and enable greater institutional participation. Previously, under the Investment Advisers Act of 1940, assets had to be held by qualified custodians, a role typically filled by banks and trust companies. Terrett added that companies such as Coinbase, Ripple, BitGo, and WisdomTree are now expected to be recognized as qualified custodians under the new measure.