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Advisers Act Rule

Definition ∞ Advisers Act Rule pertains to regulations under the Investment Advisers Act of 1940. It governs the conduct of financial professionals who provide compensated investment advice. These regulations mandate registration, disclosure, and adherence to specific operational standards to safeguard investors. In the digital asset sector, its applicability depends on whether a crypto service qualifies as an investment adviser offering securities advice.
Context ∞ The ongoing discussion surrounding the Advisers Act Rule in cryptocurrency centers on its jurisdiction over decentralized finance platforms and digital asset managers. Regulatory bodies are examining how traditional financial regulations apply to novel crypto offerings, particularly those that resemble investment products. Clarification on this rule’s reach will significantly influence how crypto investment services operate and report in the future.

Intricate, dark blue modular components are interconnected by numerous bundled conduits. The composition emphasizes a central unit, appearing as a sophisticated processing node within a larger system. Bright blue light emanates, highlighting complex internal mechanisms and suggesting active data flow. This represents a robust distributed ledger technology DLT node network, illustrating the foundational cryptographic primitives and consensus mechanism essential for transaction throughput and interoperability in a secure Web3 infrastructure environment.

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SEC Permits State Trust Companies as Qualified Crypto Custodians

The SEC's no-action relief allows registered investment advisers to treat state trust companies as "banks" for crypto custody, significantly de-risking institutional entry.