The US Senate in Virginia has unanimously approved a request to amend a bill that would now allow traditional banks operating in the Commonwealth of Virginia to offer virtual currency custody services.

Representative Christopher T. Head introduced House Bill 263 in January 2022, which calls for a change to allow eligible banks to offer cryptocurrency deposit services:

“A bank can offer virtual currency deposit services to its clients if the bank has 26 relevant protocols in place for effective risk management and compliance with applicable laws.”
The bill passed the Senate by 39 votes to none, pending signature by Virginia Governor Glenn Youngkin. Banks that intend to offer this service to customers are required to comply with three specific requirements mentioned in the bill: implement effective risk management systems, obtain adequate insurance coverage, and operate a supervisory program to address risks associated with cryptocurrencies.

However, the Senate will require bank customers to retain direct control of their public and private keys associated with their virtual currency, adding:

“In order to build trust, the bank should require customers to put their virtual currencies under the control of the bank by creating new private keys that will be held by the bank.”
Other states, such as Wyoming, have enacted stable-state currency legislation.

Related Topics: US Lawmaker Pushes for State Regulation of Stablecoin at Digital Asset Hearing

Just last month, the House Financial Services Committee debated whether the regulation of fixed coins and digital assets should be regulated at the state or federal level.

As a result, North Carolina Representative and Classification Committee member Patrick McHenry asked the committee to consider statewide regulations rather than a blanket federal law on stacked coins.

Jean Neely Liang speaks at a hearing before the House Financial Services Committee on February 8.
Referring to a report by the Presidential Task Force on Financial Markets, Jean Neely Liang, Deputy Treasury Secretary, said issuers of US dollar-denominated cryptocurrencies – both state and federal banks – must meet the same criteria as insured custodians. institutions.

Source: CoinTelegraph