According to the source, the U.S. Securities and Exchange Commission issued a no-action letter related to crypto custody that creates an opening for more firms to serve as custodians, signaling staff would not recommend enforcement when operating under the letter’s specified facts and conditions; source: SEC staff no-action letters (SEC.gov). For traders, expanded eligibility of custodians can increase compliant options for registered investment advisers under the Advisers Act Custody Rule, potentially influencing institutional flows into BTC and ETH via qualified custodians; source: SEC Advisers Act Rule 206(4)-2 and qualified custodian definitions (SEC.gov). Monitor filings and announcements from state-chartered trust companies and banks, as well as custody AUM disclosures, for evidence of onboarding that could affect spot liquidity, spreads, and basis in BTC and ETH; source: custodian regulatory disclosures and SEC oversight framework for qualified custodians (SEC.gov).