SEC allows investment advisers to use chartered trust companies as crypto custodians

**SEC Approves Chartered Trust Companies as Cryptocurrency Custodians for Investment Advisers**

The Securities and Exchange Commission (SEC) has granted investment advisers permission to utilize chartered trust companies as qualified custodians for cryptocurrency assets, marking a significant regulatory milestone for the digital asset industry. This groundbreaking decision enables registered investment advisers (RIAs) to safely store Bitcoin, Ethereum, and other cryptocurrencies through established trust institutions, potentially unlocking billions in institutional capital.

The regulatory approval addresses long-standing custody concerns that have hindered traditional financial institutions from embracing cryptocurrency investments. By allowing chartered trust companies to serve as crypto custodians, the SEC is bridging the gap between traditional finance and blockchain technology, potentially accelerating mainstream DeFi adoption.

This development could catalyze increased institutional participation in cryptocurrency markets, as investment advisers now have clearer regulatory pathways for client crypto holdings. The decision may drive significant capital inflows into Bitcoin and altcoin markets, as professional money managers gain confidence in compliant custody solutions. Financial institutions and cryptocurrency exchanges are expected to benefit from enhanced regulatory clarity, potentially boosting broader market sentiment and digital asset valuations.