On September 30, 2025, the Division of Investment Management of the SEC issued a no-action letter that allows registered investment advisers and regulated funds to use public trust companies registered by states as qualified custodians for cryptocurrency assets, provided they meet certain safeguard, due diligence, and ongoing supervision requirements. This measure clarifies a previous regulatory gray area and expands custody options for crypto assets under the Investment Advisers Act of 1940 and the Investment Company Act of 1940. This represents a significant step towards facilitating institutional adoption of crypto assets, benefiting firms like Coinbase, Kraken, and BitGo, which operate state trusts.