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)
$0.0010917
$0.0010917$0.0010917
-50.20%
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 service@support.mexc.com 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

New Viral Presale on XRPL: DeXRP Surpassed $6.4 Million

New Viral Presale on XRPL: DeXRP Surpassed $6.4 Million

The post New Viral Presale on XRPL: DeXRP Surpassed $6.4 Million  appeared on BitcoinEthereumNews.com. One of the most talked-about ecosystems in the cryptocurrency space is the XRP Ledger (XRPL), and DeXRP, the first Presale on XRPL, recently made headlines for its growth story. Attracting over 9,300 investors globally, the project has now raised over $6.4 million and is rapidly emerging as one of the most viral cryptocurrency launches of 2025. By integrating AMM and Order Book trading with a cutting-edge LP system and an open voting process for holders, DeXRP hopes to establish itself as the preferred trading destination for the XRPL community. What is DeXRP?  As the first decentralized exchange (DEX) based on XRPL, DeXRP is taking center stage as XRP continues to solidify its place in the global market. Massive expectation has been generated by the combination of DeXRP’s ambition for an advanced trading platform and XRPL’s established infrastructure, which is renowned for its quick transactions, cheap fees, and institutional-ready capabilities. In contrast to a lot of speculative presales, DeXRP’s development shows both institutional interest and community-driven momentum. Its early achievement of the $6.4 million milestone demonstrates how rapidly investors are realizing its potential. DeXRP Presale Success More than 9,300 distinct wallets have already joined the DeXRP presale, indicating a high level of interest from around the world. A crucial aspect is highlighted by the volume and variety of participation: DeXRP is not merely a niche project; rather, it is emerging as a major force in the XRPL ecosystem. DeXRP’s recent collaborations with WOW Earn and Micro3, as well as its sponsorship of the WOW Summit in Hong Kong, are also contributing factors to this uptick in investor confidence. These actions are blatant attempts to increase the company’s awareness among institutional players and crypto-native groups. The Forbes article summed it up: DeXRP is embedding credibility where others chase hype, marking it as…
Share
BitcoinEthereumNews2025/09/18 20:14
Big Week for U.S. Economic Data – What It Could Mean for Crypto

Big Week for U.S. Economic Data – What It Could Mean for Crypto

Together, these updates will provide fresh signals on the state of the American economy and could heavily influence investor sentiment […] The post Big Week for U.S. Economic Data – What It Could Mean for Crypto appeared first on Coindoo.
Share
Coindoo2025/09/21 20:03
Tron Makes Bold Moves in TRX Tokens Acquisition

Tron Makes Bold Moves in TRX Tokens Acquisition

Tron's Justin Sun supports TRX's strategic treasury initiative. TRX prices rise, signaling short-term recovery, yet long-term climate is uncertain. Continue Reading
Share
Coinstats2026/02/09 15:28