Crypto Adoption Boom: Virginia Passed Bill Allowing Banks To Offer Custody For Crypto

The mass adoption of digital assets has been one of the most important goals that the crypto industry set. There have been a lot of moves made in this direction, and they continue.

This time, new reports are coming from Virginia. Check out the news below.

It’s been just reported that the state of Virginia has unanimously passed a new cryptocurrency bill that allows banks to provide custody for digital assets.

According to a report by Fox Business, HB 263 passed the state’s legislature earlier this week. It’s also important to mention the fact that this is expected to be signed into law by governor Glenn Youngkin within the next seven days.

The new bill would permit banks to provide virtual currency custody services. This would be happening as long as they have protocols in place that could manage the risks.

More than that, according to official reports, banks that provide crypto asset custody services must possess trust powers and have a trust department approved by the state.

The bill’s sponsor, State Delegate Chris Head, explained to Fox Business the functionality of the legislation.

“By codifying the ability for state-chartered banks to become custodians of cryptocurrency, this will make Virginia the first in the country to provide this ability to banks through legislation.”

He also said this:

“Functionally, the bill allows state-chartered banks in Virginia to hold the keys to one’s cryptocurrency purse, similar to how individuals use safety deposit boxes at banks. Ultimately, this will put Virginia at a significant advantage regionally and nationwide.”

Head also made sure to explain the fact that regulations passed in Texas last year inspired him to come up with the idea for the legislation.

He said that Texas decided to tackle this topic of cryptocurrency custodian services via its regulatory process.

“I discovered that no state at that time, nor to date, has addressed cryptocurrency custodian services legislatively.”

Stay tuned for more juicy crypto news.