SEC Considers Expanding Crypto Custodian Eligibility to State-Chartered Firms

The U.S. Securities and Exchange Commission (SEC) is proposing a significant shift in the crypto industry by potentially allowing state-chartered trust companies to serve as qualified custodians for digital assets. This move aims to stimulate competition within the custodial market, offering institutions more options for asset management. The SEC’s proposal comes after discussions led by Commissioner Mark T. Uyeda, who suggested expanding eligible custodians to include these trusted entities. The proposed changes could lead to a major shakeup in the sector, impacting both regulatory clarity and industry dynamics. ]