SEC plans to open doors for more crypto guardians in the United States

The SEC has taken the path toward the digital asset industry.

On Tuesday, the Securities and Exchange Commission (SEC) approved state trust companies as custodians of crypto assets under the Investment Companies Act and the Investment Advisors Act.

National entities that are not normally allowed to accept deposits may now be held accountable for the security of investors’ crypto assets.

The non-conductive letter addresses the uncertainty of whether a state trust company is eligible as a “bank” in the act of holding crypto assets and related cash.

The green light of crypto companies

The SEC will not recommend enforcement actions against registered investment advisors or regulated funds that treat state trusts as qualified custodians of qualified crypto assets, but meet certain criteria. Conditions include annual due diligence, guardianship agreement, risk disclosure and optimal interest determination.

Brian Daly, director of the SEC investment management department, told Crypto host Eleanor Terrett in the United States.

“This is a letter from the staff, so at some point the topic can be addressed through future rulemaking. We believe that the market will benefit from getting this guide from today’s products, today’s managers and today’s issues.”

Terrett explained that this “opens the door to more players in the crypto custody market, and wider funding goes into custody crypto.” Players such as Coinbase and Ripple “will be considered qualified custodians” through standard custody, Bitgo or Wisdom Tree.

Under the new @secgov Without action letters, investment consultants can use trust companies such as Gemini as qualified custodians for crypto assets.

Amazing waiting! 🇺🇸

– geminitrustco (@geminitrustco) September 30, 2025

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SEC Chairman Paul Atkins launched the Project Crypto in July to significantly reduce the regulatory burden on the U.S. crypto industry and accelerate innovation and integration of digital assets within the economy.

Retreat to begin

SEC Commissioner Caroline Crenshaw strongly criticized staff letters about crypto-hosting of state trust companies.

She claims that relief weakens investors’ protections by allowing state trusts that do not meet traditional custody standards to hold crypto assets, thus creating dangerous precedents without proper reasons or procedures.

“On the one hand, regulations and rules regarding custody are the position among U.S. investors, and on the other hand, the risk of theft, loss or misappropriation of their assets.”

Crenshaw has been strongly opposed to Crenshaw in the past, believing that relief standards lowered the standards, creating unfair competition, crypto exceptionalism and inappropriate processes.

“Through limited factual support or legal analysis, this action creates disturbing loopholes in the regime – I am concerned that investors’ assets may fall due to cracks,” she concluded.