What is the Context of Fiduciary Powers?

The application of fiduciary powers is a critical consideration in the evolving regulatory landscape for digital asset custodians, investment platforms, and decentralized autonomous organizations (DAOs). Regulators are examining how traditional fiduciary duties translate to the novel structures and programmable assets within the crypto space. Ensuring investor protection and accountability in digital asset management remains a key area of discussion and policy development.

Fiduciary Powers

Definition

Fiduciary powers denote the legal authority and responsibility granted to an individual or entity to act on behalf of another party, managing their assets or affairs with utmost loyalty and care. A fiduciary is legally obligated to prioritize the beneficiary’s interests above their own. This relationship demands transparency, prudence, and strict adherence to established legal and ethical standards. Breaching these duties carries significant legal consequences.

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∞Qualified Custodian

∞Risk

∞Risk Control

SEC Staff Expands Qualified Custodian Definition for Institutional Crypto Asset Custody

The No-Action Letter provides a crucial regulatory pathway for Registered Investment Advisers to custody digital assets with state-chartered trust entities.

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∞AML/KYC Controls

∞Financial Institution

∞Charter Approval

OCC Grants Conditional National Bank Charter to Crypto-Focused Erebor Bank

The OCC's charter approval provides a crucial, federally-regulated on-ramp for digital asset firms, solidifying stablecoins as bank-permissible assets.

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∞Crypto Assets

∞Adoption

∞No-Action Relief

SEC Staff Expands Qualified Custodian Definition for Digital Assets

The SEC's custody clarification unlocks institutional capital by validating state-chartered trust companies as qualified custodians for crypto assets.

$A multifaceted translucent crystalline object with a luminous blue spherical core rests on a light gray surface. The intricate outer structure, resembling ice, refracts light, highlighting internal striations and deep blue accents. This visual metaphor represents a secure digital asset or a cryptographic primitive, perhaps a decentralized autonomous organization's DAO core. Its immutable encapsulation suggests robust digital asset custody and the transparency inherent in a distributed ledger technology DLT framework, emphasizing protocol integrity and on-chain governance mechanisms.$

∞Operational Risk Mitigation

∞Digital Asset Custody

∞Client Asset Safeguarding

SEC Staff Clarifies State Trust Companies Qualify as Crypto Custodians

This no-action letter provides RIAs a clear, regulated custody pathway, immediately de-risking institutional crypto adoption.

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∞Compliance

∞Investment Management

∞SEC No-Action Letter

SEC Staff Permits State Trust Companies as Qualified Crypto Asset Custodians

The SEC staff’s custody no-action relief expands the qualified custodian universe, strategically de-risking institutional crypto adoption.

∞Fiduciary Powers

∞Risk Mitigation

∞State Trust Companies

SEC Staff Permits State Trust Companies as Digital Asset Custodians

This SEC no-action letter provides critical clarity for RIAs and funds, expanding qualified digital asset custody options.

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∞Client Protection

∞Security

∞Crypto Assets

SEC Staff Permits State Trust Companies as Qualified Crypto Custodians

This no-action relief provides essential clarity, expanding the qualified custodian universe for institutional digital asset strategies.

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∞Fiduciary Powers

∞State Trust Companies

∞SEC

SEC Staff Permits State Trust Companies as Crypto Qualified Custodians

The SEC's no-action letter redefines crypto custody, allowing state trust companies to serve as qualified custodians for regulated entities, enhancing operational clarity.