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Last month, the Wyoming Division of Banking issued a no-action letter to Two Ocean granting the Wyoming-chartered non-depository trust company regulatory authorization to serve as a qualified custodian for digital assets under state and federal law. This was the first time a state or federal banking regulator had found that one of the banks or trust companies under its supervision was eligible to serve as a “qualified custodian” of digital assets for the purposes of the Investment Advisers Act of 1940 (the Advisors Act) and the SEC Custody Rule. You can read about it here and here.
With remarkable speed, just a little more than two weeks after the Division issued its no-action letter, the U.S. Securities and Exchange Commission Division of Investment Management staff (the “Staff”), in consultation with the FinHub Staff, issued a public statement (the “Statement”) related to the qualities and qualifications needed to serve as a qualified custodian for digital assets.
Chris Land, General Counsel, Wyoming Division of Banking, and author of the no-action letter shared, “the Wyoming Division of Banking welcomes the SEC staff statement. The statement
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