The post Best Crypto to Buy as SEC to Accept More Firms as Crypto Custodians appeared on BitcoinEthereumNews.com.

Up until now, only qualified custodians such as banks, broker-dealers, or OCC-chartered national banks qualified under the Investment Advisers Act of 1940 and the Investment Company Act of 1940. This left crypto custodians with very limited options, and if advisors relied on state-trust companies, they had to bear the risk of SEC enforcement. This lack of clarity made many institutional investors hesitant, which has been stifling crypto growth so far. However, this no-action letter is a welcome move that eliminates the ‘guessing game’ and should benefit fund shareholders and advisory clients in the long run. Read on as we dig deeper into the SEC’s attempt at providing more crypto clarity. We’ll also suggest the best cryptos to buy now to benefit from this shift. Conditions to Be Met Unlike existing custodian options, state-trust companies are regulated at the state level and not federally. However, the committee has also imposed certain conditions that must be fulfilled if advisors want to use state-trust companies as custodians. Fund managers must run detailed due diligence to confirm whether the company is authorized by the state regulator and has written internal policies covering areas such as cybersecurity and theft protection. Issuers must review GAAP-based annual audited financial statements and internal control reports from independent auditors. Assets under custody must be segregated from the trust company’s own assets, with restrictions on lending, pledging, or re-hypothecation without written consent. James Seyffart, an ETF analyst, applauded the move, saying this was the kind of step the industry had needed for years. Crypto custody has long been the most stubborn regulatory bottleneck for wider institutional adoption. Now, with things starting to change, it’ll be easier for hedge funds and registered advisors to hold crypto legally. More custodians will also foster greater competition, leading to healthier crypto markets. This makes…

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Filed under: News - @ October 1, 2025 1:29 pm