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SEC Division of Investment

Definition ∞ The SEC Division of Investment Management is a branch of the U.S. Securities and Exchange Commission responsible for overseeing the investment management industry. This division regulates investment companies, such as mutual funds and exchange-traded funds, and investment advisers. It establishes rules to protect investors and ensure fair practices in the management of collective investment schemes.
Context ∞ The SEC Division of Investment Management plays a pivotal role in shaping the regulatory environment for digital asset investment products, particularly those structured as funds. Discussions frequently involve the classification of various digital assets as securities and the appropriate regulatory oversight for crypto-related investment vehicles. A critical future development is the issuance of clearer guidance and potentially new rules from this division to address the unique characteristics of digital assets within registered investment products.

A sophisticated hardware module, metallic with deep blue accents, showcases a central, glowing blue crystalline component. This secure element, likely a cryptographic processor, is engineered for robust private key management and digital asset custody. Its intricate design suggests advanced tamper-proof mechanisms and secure enclave technology, vital for blockchain security. The device facilitates offline transaction signing and seed phrase protection, essential for non-custodial self-custody within decentralized finance DeFi ecosystems, integrating multi-signature or biometric authentication for enhanced asset protection.

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SEC Staff Permits State Trust Companies to Custody Digital Assets for Funds

The SEC's no-action relief allows registered funds and advisers to use state-chartered trust companies for digital asset custody, unlocking institutional access.