The U.S. Senate of Virginia approved an amendment to a bill allowing banks in the Commonwealth of Virginia to provide custody services for crypto assets.
In January 2022, senatorial candidate Christopher T. Head proposed an amendment to House Bill 263 to allow banks to offer custody services for cryptocurrencies:
“A bank may provide virtual currency custody services to its customers if the bank has appropriate protocols in place to effectively manage risk and comply with applicable laws.”
This means that banking organizations that intend to offer virtual currency custody services to customers will have to adhere to the three specific requirements mentioned in the bill – to implement effective risk management systems, have adequate insurance coverage, and run an oversight program to address the risks associated with cryptocurrencies. .
Additionally, by decision of the Senate, the bill was supplemented with a requirement for the transfer of direct control over public and private keys associated with the storage of cryptocurrencies by clients to banks:
“Acting in a fiduciary capacity, the bank should require customers to place their virtual currencies under the control of the bank by generating new private keys that will be held by the bank.”
Christopher T. Head added:
“Functionally, the bill allows state banks in Virginia to store the keys to a cryptocurrency wallet, similar to how private individuals use safes in banks. Ultimately, this will give Virginia a significant edge at the regional and national levels.”
The amendments were passed unanimously by the Virginia State Senate, and the bill was submitted for signature by Virginia Gov. Glenn Youngkin. In addition, Wyoming state legislators are also interested in creating a favorable environment for the development of the crypto industry in their jurisdiction.
In late February 2022, a bill was submitted to the Wyoming State Legislature that would allow the state treasury to issue stablecoins pegged to the US dollar, and earlier, another legislative initiative to help attract miners and cryptocurrency companies to the state.
Source: Bits
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