Delegate Christopher T. Head made an introduction of this particular bill in the month of January this particular year. The bill sought a proper amendment in order to allow all the different banks that were eligible to provide some crypto custody services.
According to India Today crypto news, the Senate of Virginia that is situated in the United States has managed to unanimously approve this particular bill and got the amendment request approved.
This means that all the traditional banks that are operating in the Commonwealth of Virginia will be allowed to provide certain custody services related to virtual currency.
This particular bill was introduced in the month of January 2022 and was named House Bill No. 263 and it sought a particular amendment or a proper rule that would actually allow the different eligible banks in order to provide certain services of custody that were related to the cryptocurrency in the best way.
“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.”This particular statement that was mentioned in the bill required the approval of the Virginia Senate.
Well, the good news here is that the Senate has actually provided approval to the bill and hence the amendment is fit to become a law. The banks that are eligible and working in the state of Virginia will be allowed to provide these custody services to those who are in the need of it for sure.
Also Read: Today News Cryptocurrency: Crypto Bill Postponed By European Parliament Over Certain Proof-Of-Work
Bill Passed By The Virginia Senate To Allow Banks to Offer Custody Services
The vote was pretty unanimous as the Senate managed to pass the bill with a sweeping 39-0 vote and is waiting to be signed into law by Governor of Virginia Glenn Youngkin. Banks that intend to offer this service to clients will need to adhere to three specific requirements mentioned in the bill: implement effective risk management systems, possess adequate insurance coverage, and launch an oversight program to address risks associated with cryptocurrencies.
However, the Senate will require the banks’ customers to retain direct control of their public and private keys associated with their virtual currency, adding:
“Acting in a fiduciary capacity, the bank shall require customers to transfer their virtual currencies to the control of the bank by creating new private keys to be held by the bank.”
Other states such as Wyoming have also recently seen an introduction of legislation for a state-issued stablecoin. Just last month, the House Committee on Financial Services had a discussion about whether regulations on stablecoins and digital assets should be addressed at the state or federal level.
In this particular regard, the Representative as well as the Ranking Committee Member of the North Carolina State, Patrick McHenry has made a request to the committee. He has asked the entire committee to consider the state-level framework for crypto regulations. This request has been made in lieu of the comprehensive federal law that exists on the different stablecoins that are introduced into the market of cryptocurrency.
According to India Today crypto news, Making a quote of the report that has been produced in the Working Group of Financial Markets by the President, Jean Nellie Liang who is the undersecretary for domestic finance in the Treasury Department, made an interesting point.
She mentioned that the stablecoin issuers that are pegged by the U.S. dollar should actually be held to similar standards that are being imposed on the insured depository institutions, whether they belong to the state or federally chartered banks.
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