Key Points
- •SEC permits Ripple, Coinbase, BitGo as custodians.
- •State-chartered trusts gain regulatory acceptance.
- •Potential for increased institutional asset inflows.
The SEC issued guidance enabling Ripple, Coinbase, and BitGo to operate as qualified custodians for crypto assets through recognition of state‑chartered trust companies, impacting regulatory compliance.
This guidance allows broader digital asset custody options, potentially increasing institutional investment and aligning with regulatory advancements in crypto asset management.
The U.S. Securities and Exchange Commission (SEC) has issued new guidance, allowing Ripple, Coinbase, and BitGo to act as qualified custodians. This marks a pivotal change in the recognition of state‑chartered trust companies. Comments on SR‑NASDAQ‑2025‑016
Ripple's Standard Custody, Coinbase, and BitGo can now conduct regulated custody activities. This breakthrough follows the SEC's recognition of trust companies, setting expectations for potentially enhanced digital asset management.
The guidance is likely to influence digital asset markets significantly. Large‑scale institutions may now have more confidence in engaging with cryptocurrencies, potentially increasing the inflow of funds into the sector.
Financially, the guidance supports the rise of crypto ETFs, specifically those involving Bitcoin, Ethereum, and stablecoins. With over $75 billion already in crypto ETFs, regulated custody could amplify growth.
The SEC's decision also promises to reshape regulatory dynamics, promoting transparency and boosting institutional trust in digital assets. Ripple, Coinbase, and BitGo could experience enhanced operational capabilities.
Looking ahead, the SEC's direction might result in further regulatory alignments impacting technological infrastructure and market structure. Historical parallels suggest this regulatory recognition may lead to increased institutional engagement in crypto assets.
Brian Daly, Director, SEC Office of Investment Management, "This additional clarity was necessary because state‑licensed trust companies were not universally considered appropriate custodians for crypto assets. [...] We believe the market will benefit from this guidance for today’s products, today’s managers, and today’s problems."