TLDR The SEC issued a no-action letter on September 30, clarifying the eligibility of state-chartered trust companies as custodians for crypto assets. Ripple, Coinbase, and other digital asset firms can now qualify as custodians for registered funds under the new SEC guidance. The SEC’s guidance resolves uncertainty about whether state-chartered trust companies meet the definition [...] The post SEC Clarifies Custodian Rules, Enabling Ripple and Coinbase’s Eligibility appeared first on CoinCentral.TLDR The SEC issued a no-action letter on September 30, clarifying the eligibility of state-chartered trust companies as custodians for crypto assets. Ripple, Coinbase, and other digital asset firms can now qualify as custodians for registered funds under the new SEC guidance. The SEC’s guidance resolves uncertainty about whether state-chartered trust companies meet the definition [...] The post SEC Clarifies Custodian Rules, Enabling Ripple and Coinbase’s Eligibility appeared first on CoinCentral.

SEC Clarifies Custodian Rules, Enabling Ripple and Coinbase’s Eligibility

2025/10/01 18:41
3 min read

TLDR

  • The SEC issued a no-action letter on September 30, clarifying the eligibility of state-chartered trust companies as custodians for crypto assets.
  • Ripple, Coinbase, and other digital asset firms can now qualify as custodians for registered funds under the new SEC guidance.
  • The SEC’s guidance resolves uncertainty about whether state-chartered trust companies meet the definition of a “bank” under federal law.
  • Investment advisers must conduct annual reviews to ensure custodians have policies safeguarding crypto assets from theft or loss.
  • Custodial agreements must prohibit the lending or rehypothecating of crypto assets without client consent under the new rules.

The SEC issued a no-action letter on September 30, providing clarity on the eligibility of state-chartered trust companies as custodians for crypto assets. This decision opens doors for Ripple, Coinbase, BitGo, and other digital asset firms to qualify as custodians for registered funds. The guidance resolves ongoing confusion regarding the definition of a “bank” under the Investment Advisers Act and the Investment Company Act.

Ripple and Coinbase Among the Beneficiaries

The SEC’s new guidance positions Ripple and Coinbase to serve as qualified custodians for crypto assets. Both companies, operating as state-chartered trust companies, faced challenges regarding their eligibility under federal custody requirements. Brian Daly, Director of the SEC’s Division of Investment Management, emphasized that “this additional clarity was needed because state-chartered trust companies were not universally seen as eligible custodians for crypto assets.”

The letter addresses uncertainty by confirming that state trust companies can act as custodians for digital assets. The SEC’s move aligns with the growing recognition of state-chartered trust companies as legitimate players in the crypto custody sector. Ripple, Coinbase, and other firms previously ineligible can now meet the legal requirements for serving clients’ crypto assets.

SEC Sets New Custodian Requirements for Crypto

The SEC letter outlines several requirements for investment advisers to use state-chartered trust companies as custodians for crypto assets. Investment advisers must conduct annual reviews to ensure that custodians have policies in place to safeguard assets from theft or loss. Additionally, custodial agreements must prohibit the lending, pledging, or rehypothecating of crypto assets without clients’ consent.

State trust companies must also maintain audited financial statements and independent reports on their internal controls. These measures ensure that crypto assets remain secure and separate from the custodian’s balance sheet. Daly noted that the guidance addresses the “today’s products, today’s managers, and today’s issues,” while future rulemaking may provide additional clarity.

The post SEC Clarifies Custodian Rules, Enabling Ripple and Coinbase’s Eligibility appeared first on CoinCentral.

Market Opportunity
Nowchain Logo
Nowchain Price(NOW)
$0.0008471
$0.0008471$0.0008471
-17.20%
USD
Nowchain (NOW) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

What Does Market Cap Really Mean in Crypto — and Why Australians Care

What Does Market Cap Really Mean in Crypto — and Why Australians Care

Introduction: What Does Market Cap Mean in Cryptocurrency Ridgewell Tradebit is an automated cryptocurrency trading platform that helps users better understand
Share
Techbullion2026/02/09 23:34
Fed forecasts only one rate cut in 2026, a more conservative outlook than expected

Fed forecasts only one rate cut in 2026, a more conservative outlook than expected

The post Fed forecasts only one rate cut in 2026, a more conservative outlook than expected appeared on BitcoinEthereumNews.com. Federal Reserve Chairman Jerome Powell talks to reporters following the regular Federal Open Market Committee meetings at the Fed on July 30, 2025 in Washington, DC. Chip Somodevilla | Getty Images The Federal Reserve is projecting only one rate cut in 2026, fewer than expected, according to its median projection. The central bank’s so-called dot plot, which shows 19 individual members’ expectations anonymously, indicated a median estimate of 3.4% for the federal funds rate at the end of 2026. That compares to a median estimate of 3.6% for the end of this year following two expected cuts on top of Wednesday’s reduction. A single quarter-point reduction next year is significantly more conservative than current market pricing. Traders are currently pricing in at two to three more rate cuts next year, according to the CME Group’s FedWatch tool, updated shortly after the decision. The gauge uses prices on 30-day fed funds futures contracts to determine market-implied odds for rate moves. Here are the Fed’s latest targets from 19 FOMC members, both voters and nonvoters: Zoom In IconArrows pointing outwards The forecasts, however, showed a large difference of opinion with two voting members seeing as many as four cuts. Three officials penciled in three rate reductions next year. “Next year’s dot plot is a mosaic of different perspectives and is an accurate reflection of a confusing economic outlook, muddied by labor supply shifts, data measurement concerns, and government policy upheaval and uncertainty,” said Seema Shah, chief global strategist at Principal Asset Management. The central bank has two policy meetings left for the year, one in October and one in December. Economic projections from the Fed saw slightly faster economic growth in 2026 than was projected in June, while the outlook for inflation was updated modestly higher for next year. There’s a lot of uncertainty…
Share
BitcoinEthereumNews2025/09/18 02:59
TrendX Taps Trusta AI to Develop Safer and Smarter Web3 Network

TrendX Taps Trusta AI to Develop Safer and Smarter Web3 Network

The purpose of collaboration is to advance the Web3 landscape by combining the decentralized infrastructure of TrendX with AI-led capabilities of Trusta AI.
Share
Blockchainreporter2025/09/18 01:07