Virginia Senate Allows Banks to Provide Crypto Custody Services

The Senate in Virginia has recently passed a cryptocurrency bill. The bill was presented in the Senate by Christopher T. Head. The bill identified as house bill no.263 first made a public appearance in January this year. The Bill was directed at proposing a significant amendment in the cryptocurrency regulatory legislator in the state.

By the decree of the new amendment bill, the Senate is seeking to grant the local banking institution the power to offer cryptocurrency custody facilities to their clients. The bill was under consideration for a while. According to the latest development, the amendment bill was recently approved in the Senate of Virginia without a single negative vote.

New Bill Allows Citizens to Trade Crypto in Virginia

The newly approved bill will soon go into effect. However, the bill is not giving the local banking institutions to act independently in the matter of cryptocurrencies. The bill required the banks to qualify a strictly regulated criterion for becoming eligible for the transition. Delegate T.Head clarified that the banks who wish to enable digital custodial services must comply with 26 appropriated protocols.

The bill was able to get all 30 positive votes. However, the last person to make the bill official is the Governor of state Glenn Youngkin. Among the most important legal requirement for banks to enable digital currency custodial services is the availability of insurance coverage and set up a committee to inform the account holders about the risks related to cryptocurrency trading.

The bill has also taken the measure to grant the autonomy of accounts to the banking clients. It means that the bill ensures that the owner of the crypto account has full control over their private and public key phrases that will allow them to log in and out of their accounts at their discretion.

Meanwhile, the jury is still out on the matter of stablecoin regulations in the United States under Federal and state laws. The House Committee of Financial Services recently set up a delegated committee to research the matter. Patrick McHenry, a representative hailing from North Carolina, proposed a pan-state regulatory framework to tackle the issue.

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