U.S. SEC moves to expand recognition scope for virtual asset custodians

On the 30th (local time), Eleanor Terrett, host of Crypto in America, said on X (formerly Twitter) that "the U.S. Securities and Exchange Commission (SEC) has allowed state-licensed trust companies to be recognized as qualified virtual asset (cryptocurrency) custodians."

This move is expected to broaden the range of stablecoin administrators and, by resolving regulatory uncertainty in the custody market, make it possible for more institutions to participate.

Under existing U.S. regulation, assets had to be held with qualified custody providers under the Investment Advisers Act of 1940, and generally only banks or trust companies met those conditions. However, with the SEC's guidance change, investment advisers and registered funds, among others, may be able to undertake virtual asset custody.

Terrett said, "As a result of this measure, Coinbase, Ripple, BitGo, and WisdomTree are expected to be recognized as custody institutions."