The U.S. Securities and Exchange Commission (SEC) has issued a no-action letter confirming that under the Investment Advisers Act of 1940, investment advisers may use state-chartered trust companies as qualified custodians for digital assets. The letter responds to a formal request from Simpson Thacher & Bartlett LLP. This move provides long-awaited regulatory clarity for digital asset custody, allowing registered investment advisers and regulated funds to legally custody and manage Bitcoin, Ether, and other crypto assets through state trust companies, without the worry of facing enforcement action. (TheBlcok)

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