Investment Company Act

Definition ∞ The Investment Company Act of 1940 is a United States federal law that regulates the organization of companies that engage primarily in investing, reinvesting, and trading in securities, such as mutual funds. This act imposes requirements regarding registration, governance, and operational practices to protect investors. Its applicability to certain digital asset funds, particularly those holding cryptocurrencies or other tokens deemed securities, is a significant regulatory consideration.
Context ∞ A central debate in the digital asset space involves whether certain crypto funds or decentralized autonomous organizations should be classified as “investment companies” under this act. Such a classification would subject them to stringent regulatory obligations, potentially impacting their structure and ability to operate. Regulatory bodies are actively assessing various digital asset offerings against the criteria of the Investment Company Act, with implications for market participants.

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→Qualified Custodian Status

→Investment Company Act

→Advisers Act Rules

SEC Eases Custody Rules Allowing State Trust Companies for Digital Assets

SEC staff guidance permits registered investment advisers to utilize State Trust Companies as qualified crypto custodians, immediately unlocking institutional capital access.

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→Institutional Capital

→State Trust Companies

→Digital Asset Custody

SEC Staff Eases Digital Asset Custody Rules for State Trust Companies

The No-Action Letter redefines "bank" for custody, immediately de-risking digital asset portfolio management for registered investment advisers.

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→Private Key Management

→Registered Funds

→Operational Controls

SEC Staff Permits State Trust Companies Digital Asset Custody

The SEC staff's no-action relief operationalizes crypto custody for registered funds, expanding institutional access under rigorous due diligence standards.

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→Digital Asset

→Financial Regulation

→Regulatory Clarity

SEC Staff Permits State Trusts as Qualified Digital Asset Custodians

The Staff's no-action relief provides a critical compliance pathway, enabling SEC-registered investment advisers to utilize state-chartered trust companies as qualified digital asset custodians.

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→Financial Services Integration

→Securities and Exchange Commission

→Qualified Custodian Status

SEC Permits State Trust Companies as Qualified Crypto Custodians for Funds

The SEC's custody no-action relief operationalizes a path for RIAs and funds to engage state-level trust companies, mitigating systemic risk for digital asset portfolios.

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→On-Chain Operations

→Digital Asset Safe Harbor

→Innovation Exemption Framework

SEC Announces Innovation Exemption Framework to Modernize Digital Asset Regulation

The shift from enforcement to an exemption-based framework fundamentally alters the US compliance calculus, providing a clear path to regulatory legitimacy for compliant market participants.

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→Investment Adviser

→Custody Rule Compliance

→Adoption

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 detailed view of a blue, textured, modular hardware unit reveals intricate internal mechanisms. Metallic components and precise circuitry suggest advanced cryptographic processing. Circular indicators on the lighter blue surface might represent secure multi-party computation status or public-key infrastructure elements. The robust design implies a dedicated hardware wallet or a validator node component, engineered for immutable ledger integrity and decentralized network security. This device embodies resilient DLT infrastructure.

→Regulatory Clarity

→Asset Segregation

→Custody Rule Compliance

SEC Staff Confirms State Trust Companies Qualified Digital Asset Custodians

The SEC's no-action relief operationalizes institutional digital asset custody by clarifying the "qualified custodian" status for state-chartered trust companies.

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→Investment Company

→Crypto Assets

→Operational Due Diligence

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.

→Regulatory Relief

→Investment Company Act

→Custody Rule Compliance

SEC Staff Permits State Trust Companies as Qualified Digital Asset Custodians

This no-action relief operationalizes institutional crypto access by expanding the qualified custodian universe, mitigating a critical compliance bottleneck for RIAs.