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Justin Browder Quoted in Law360 on SEC No-Action Letter to Simpson Thacher

10.01.25

Partner Justin Browder was quoted in a Law360 article titled, “SEC Gives Crypto Custody Nod to State Trust Companies,” which discussed a no-action letter issued to Simpson Thacher by the Staff of the U.S. Securities and Exchange Commission’s (SEC) Division of Investment Management. The letter was issued in response to the Firm’s request for confirmation that the SEC staff will not recommend enforcement actions against registered investment advisers and certain funds that use state trust companies as custodians for digital assets.

Justin, who authored the request, highlighted that the no-action letter provides helpful guidance by setting out specific due diligence and operational expectations for using state trust companies as custodians for crypto assets. He noted that the move could "bring consistency across the industry in terms of what the state trust companies must or will be willing to provide to allow the advisers and funds to fulfill their fiduciary duties," and that "it imposes standards that our clients view as very helpful." He further observed that the move may encourage more registered funds and advisers to consider using state trust companies—many of which have developed technical expertise in safeguarding digital assets—for digital asset custody over time.

To read the full article, please click here (subscription required).