SEC Opens Floodgates: State Trusts Now Cleared for Crypto Custody in Watershed Move

Wall Street's main cop just rewrote the rulebook—and your state trust company might be holding Bitcoin by breakfast.

The Game-Changer

Federal regulators greenlit state-chartered trusts for digital asset custody, effectively bypassing the traditional banking blockade that's kept institutional money on crypto's sidelines. No more waiting for national bank approvals—the SEC just handed keys to dozens of state-level players overnight.

Why This Matters

This isn't just paperwork—it's a fundamental power shift. State trusts now compete directly with banking giants for custody business, potentially slashing fees and accelerating institutional adoption. The move effectively creates a parallel financial infrastructure while Wall Street's old guard debates whether Bitcoin belongs in a retirement portfolio.

The Bottom Line

Watch for a land grab as state trusts rush to build crypto vaults—because nothing motivates financial innovation like regulatory permission and the scent of fresh revenue streams. Finally, a government decision that actually acknowledges this century's financial technology exists.