SEC allows advisers and funds to use state trust companies for crypto custody under certain conditions

On September 30, the SEC Division of Investment Management issued a no-action letter, in response to a law firm’s request, stating it would not recommend any enforcement action against registered investment advisers or regulated funds for treating a state trust company as a “bank” custodian for cryptoassets and related cash under custody provisions of the Investment Advisers Act and Investment Company Act, provided it comports with the conditions outlined in the letter….
By: Orrick, Herrington & Sutcliffe LLP