SEC Decision Unlocks Billions in Institutional Crypto Access via State Trusts

A landmark decision from the SEC is set to unlock significant institutional capital for the crypto market. The Commission has declared that investment advisers can now use state-chartered trust companies as qualified custodians, a move that dismantles a major operational barrier for traditional finance.

This no-action letter means that thousands of registered investment advisers and regulated funds can now securely hold cryptocurrencies for their clients through established state trust partners.

Hailed by analysts as “exactly the sort of thing the industry was asking for,” this pivot offers a regulated framework for institutional participation, signaling a potential end to the banking isolation fostered by “Operation Choke Point 2.0.”