US Senate Unanimously Approves the Amendment that Allows Traditional Virginia Banks to Offer Digital Assets Custody Services

US Senate amends the bill to allow Virginia state’s banks to offer digital assets custody services.

Recently, a Republican state representative from Virginia introduced a bill to amend a bill initially introduced in the senate during January. Senator Christopher T. Head put forward the proposed amendment that allows traditional banks of state Virginia to offer digital assets custody services to the customers, given they fulfill all the requirements. The bill stated:

“A bank may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws.”

It got passed by the senate with a unanimous vote of 39-0. However, to be inducted into the law, the bill is yet to be signed by state governor Glenn Youngkin.

The banks interested in offering customers digital assets custody services will be required to adhere to three specific requirements; introduction of an oversight program to address risks related with digital assets, implementation of an effective risk management system and having adequate insurance coverage in place.

During the past couple of months other states like Wyoming have also introduced similar bills. Wyoming put forward legislation concerning state-issued Stablecoins.

In February, the House Committee on financial services discussed whether the issues related to regulation of Stablecoins and cryptocurrencies should be dealt on federal or state level.

It is pretty clear from the recent developments that the US office bearers are now finally taking crypto regulation as a crucial issue. While in the past people like SEC chairman Gary Gensler have denied the need for any further regulatory laws, others are constantly asking for a thorough study of the crypto market and how it could be regulated. The key point here is the crypto enthusiasts, not in any way, want any such action that halt the related technological advancement.

In this regard the SEC-Ripple lawsuit is of a very critical nature. As the court, at any point in future, might orders the fed to come up with clear crypto regulations.

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