Investment Adviser Act

Definition ∞ The Investment Adviser Act is a United States federal law that governs the regulation of investment advisers. It mandates registration with the Securities and Exchange Commission for certain advisers and imposes fiduciary duties, requiring them to act in the best interests of their clients. The Act aims to protect investors from fraud and deceptive practices in investment advice.
Context ∞ The Investment Adviser Act holds significant relevance for entities providing advice on digital assets, particularly if those assets are deemed securities. News frequently covers SEC guidance and enforcement actions related to crypto firms operating as unregistered investment advisers. The ongoing debate centers on how the Act’s provisions apply to decentralized protocols and new forms of digital asset advisory services, prompting calls for clearer regulatory interpretations.

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→US Jurisdiction

→Fiduciary Duty

→Regulatory Clarity

SEC Staff Eases Custody Rules for Funds Using State Trust Companies

The SEC staff's no-action relief allows registered funds to use state trust companies as qualified custodians, immediately de-risking institutional crypto adoption.

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→Investment Company Act

→Asset Segregation

→Asset

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.

A sophisticated, transparent component reveals intricate internal mechanisms. A central metallic shaft, resembling a validator node or cryptographic primitive, is precisely engineered within a translucent blue housing. Internal structures suggest complex on-chain data processing and smart contract execution. This design evokes a decentralized ledger technology DLT module, emphasizing its blockchain architecture and interoperability protocol. Robust metallic elements signify secure digital asset custody and reliable consensus mechanism operations. The transparent casing allows conceptual visualization of a zero-knowledge proof ZKP circuit or hardware wallet security module, highlighting precision in tokenomics implementation.

→Digital Asset Custody

→Private Key Management

→No-Action Letter

SEC Staff Allows State Trust Companies as Qualified Crypto Custodians

The SEC Staff's No-Action Letter permits RIAs and Regulated Funds to use State Trust Companies as Qualified Custodians for digital assets, structurally de-risking institutional adoption.

A faceted blue crystal cube, representing a secure digital asset or cryptographic key, is centrally suspended within a minimalist white ring mechanism. This mechanism, featuring four articulated arms with metallic fasteners, evokes a sense of controlled precision and advanced security protocols. The background presents a blurred, intricate circuit board-like structure with glowing blue accents, suggesting a complex technological ecosystem or a decentralized network infrastructure. This visual metaphor highlights the intersection of quantum cryptography, blockchain security, and the evolving landscape of digital asset management within a corporate crypto framework, emphasizing robust safeguarding of private keys and distributed ledger integrity.

→Adoption

→State Trust

→Financial Regulation

SEC Clarifies State Trust Companies Can Custody Digital Assets for Institutions

RIAs must now update compliance frameworks to leverage state-trust custody, ensuring strict asset segregation and private key controls.

Investment Adviser Act

SEC Staff Eases Custody Rules for Funds Using State Trust Companies

SEC Staff Expands Qualified Custodian Definition for Institutional Crypto Asset Custody

SEC Staff Allows State Trust Companies as Qualified Crypto Custodians

SEC Clarifies State Trust Companies Can Custody Digital Assets for Institutions

Incrypthos

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