A recent technical move by the SEC has unexpectedly sparked intense discussion throughout the cryptocurrency community. While the agency’s action was a staff-level decision rather than a sweeping rule change, it has opened a crucial door for institutional participation. For Ripple and the XRP ecosystem, the implications are significant enough that many observers are calling the move outright bullish. What Changed: A Crucial SEC Clarification The SEC’s Division of Investment Management issued a no-action letter stating that investment advisers can now use state-chartered trust companies as “qualified custodians” for crypto assets. Under the Investment Advisers Act of 1940, advisers are required to safeguard client assets with a qualified custodian, traditionally, banks or nationally chartered trust companies. This new guidance extends that recognition to state-chartered trust entities, provided advisers conduct proper due diligence and determine the arrangement is in the best interest of their clients. BOOM! Ripple ( $XRP ) just got recognized as a qualified U.S. custodian under new SEC staff guidance Alongside Coinbase, BitGo, and others. The gates are opening. Banks, funds, institutions, come on in. BULLISH ON $XRP ! LFG! https://t.co/bdDzqHFk7A — X Finance Bull (@Xfinancebull) September 30, 2025 This adjustment may sound narrow, but it resolves a longstanding point of uncertainty. State trust companies were not universally accepted as eligible custodians for crypto, leaving many advisers in limbo. The SEC staff has now offered clarity, reducing friction for custody arrangements without compromising investor protections. Who Benefits: Ripple Among the Recognized Custodians The immediate winners from this clarification are firms that already operate state-chartered trust platforms. Coinbase Custody, BitGo Trust, and Ripple’s Standard Custody & Trust Company now fall squarely within the definition of acceptable custodians. Ripple entered this space through its acquisition of Standard Custody, giving the company a direct foothold in the U.S. institutional custody market. With this recognition, Ripple is now on the same regulatory footing as other established players, a milestone that industry observers believe could dramatically expand its institutional relevance. Why It Matters: Unlocking Institutional Flows For institutions, custody is not optional — it is the regulatory gatekeeper for market access. Registered investment advisers, funds, and exchange-traded products cannot hold crypto assets without a qualified custodian. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 By explicitly acknowledging state-chartered trust companies, the SEC staff has effectively widened the pool of service providers, creating a clearer path for institutions to custody crypto assets at scale. This is why commentators like X Finance Bull highlighted Ripple’s position, framing the development as “bullish” for XRP. With Standard Custody under its wing, Ripple now sits among the limited set of firms positioned to serve as custodians for institutional crypto flows. That recognition strengthens its infrastructure role in the U.S. market and could accelerate adoption. Important Caveats: Guidance, Not a Green Light It’s essential to note that the SEC’s move is staff guidance, not a new law or blanket approval. Advisers still carry the responsibility of vetting custodians and ensuring client protection. The SEC can also revisit or refine its position. This development removes uncertainty, making it easier for institutions to engage, but it doesn’t automatically grant Ripple or other custodians a license. The Bottom Line The SEC’s no-action letter may not grab headlines like a landmark court ruling, but its practical effects are significant. Reducing custody barriers gives firms like Ripple a clearer runway to serve institutional clients. This development is a significant acknowledgment of XRP’s legitimacy in the U.S. market, leading many, including X Finance Bull, to view it as a major bullish signal for Ripple and XRP. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Ripple (XRP) Just Gained Bullish Recognition in the United States appeared first on Times Tabloid .
