SEC is planning to open doors for more crypto guardianship players in the US

The United States Securities and Exchange Commission has taken another step to facilitate the path for the digital assets industry.

On Tuesday, the SEC approved trust companies to act as preservators for crypto assets under the Investment Company Act and the Investment Advisers Act.

State entities that are not federally chartered banks, which are generally not allowed to accept deposits, can now be responsible for the safety of the crypto assets of investors.

The no-action letter address Uncertainty about whether national trust companies are eligible if “banks” are under actions for holding crypto assets and related money.

Greenlight for Crypto companies

The SEC will not recommend enforcement actions against registered investment advisers or regulated funds that handle state confidence companies as qualified preservators for crypto activa, subject to the meeting for specific conditions. The conditions include annual due diligence, custody agreements, risk solution and provisions of the best interest rate.

“This extra clarity was necessary because the state-chartered trust companies were not universally seen as eligible retainers for crypto-assets,” Brian Daly, director of the SECs Division of Investment Management, told Crypto in America host Eleanor Terrett.

“This is a staff letter, so at a given moment this subject can be tackled by future regulations. We believe that the market will benefit from this guidance for today’s products, today’s managers and the problems of today.”

Terrett explained that “this opens the door for more players in the Crypto -Voogdijmarkt, as well as broader access for funds to Crypto Guardianship.” Players such as Coinbase and Ripple with detention due to standard custody, bitgo or wisdom tree, and others, “will be recognized as qualified custodes.”

Under the new @Secgov No-action letter, investment advisers can use trust companies such as Gemini as qualified preservators for crypto-assets.

Amazing wait! 🇺🇸

– Geminitrustco (@geminitrustco) September 30, 2025

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SEC chairman Paul Atkins revealed “Project Crypto” in July to drastically reduce the legal burden for the American crypto industry and to accelerate innovation and integrating digital assets within the economy.

The pushback starts

SEC commissioner Caroline Crenshaw criticized The staff letter about the crypto guardianship of the state of Trust.

She claimed that the exemption weakens the protection of investors by the Trust companies of the State, which do not meet traditional custody standards, to keep crypto assets and to create a dangerously precedent without the correct justification or process.

“The articles of association and rules with regard to guardianship are somewhat between American investors, and the risk of theft, loss or embezzlement of their assets on the other.”

Crenshaw, who has been violently anti-crypto in the past, argued that the relief reduces the standards, creates unfair competition, crypto-feature and incorrect process.

“With limited factual support or legal analysis, this promotion is bored a disturbing gap in that regime – and I fear that the assets of investors can fall through the cracks,” she concluded.