Virginia Senate approves bill on holding cryptocurrencies by banks

Virginia Senate approves bill on holding cryptocurrencies by banks

Republican Party member and U.S. Senate candidate Christopher Head said the basis for the bill was the Cryptocurrency and Blockchain Legal Framework Act, signed into law by the governor of Texas last year.

Head was interested in how Texas lawmakers worked through the cryptocurrency regulations. However, he said, no other U.S. state has yet paid adequate attention to storing digital assets at the legislative level.

Under the bill introduced by Head, state banks can provide virtual currency custody services to customers if those banks use protocols to effectively manage risk. Virginia Governor Glenn Youngkin is expected to sign it within seven days.

“Local banks will be able to keep keys to cryptocurrency wallets in the same way that individuals use safes at banks. This will give Virginia a significant advantage in regulating the industry on a regional and state level. Virginia will be the first state in the U.S. to enshrine this in law”.

Head

He believes that cryptocurrencies should be looked at not only by ordinary citizens, but also by politicians. Head called cryptocurrencies a new asset that is becoming increasingly popular and has great potential to boost the economy.

“As an entrepreneur and politician, I’m always looking for opportunities to create new jobs and grow businesses. This can be accomplished through cryptocurrencies”.

Head

The U.S. Office of the Comptroller of the Currency (OCC) allowed state banks to provide custodial services for crypto-assets back in 2020. However, Head noted that it is laws with clear provisions for cryptocurrencies that bring more clarity to their regulation than regulations that are easier to change or completely repeal.

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Written by Renat
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