The US Senate has unanimously approved a request to amend a bill that would now allow conventional banks operating in Virginia to provide cryptocurrency custody services.
The Coin Telegraph reported that Representative Christopher T. Head introduced the bill (House Act 263) in January 2022, seeking an amendment to allow eligible banks to provide services Save cryptocurrency.
A bank may provide its clients with virtual currency custody services as long as the bank has 26 appropriate protocols in place to effectively manage risk and comply with applicable laws,' T Head said in the proposed bill.
The bill passed the Senate by 39 to zero, and is expected to be signed into law by Virginia Governor Glenn Youngkin.
Banks intending to provide this service to customers will need to comply with three specific requirements stated in the law - implementing effective risk management systems, having adequate insurance coverage and launching a supervisory program to address associated risks Cryptocurrency.
However, the Senate will require bank customers to retain direct control over their public and private keys associated with their virtual currency.
The bank, acting in a fiduciary capacity, is asking customers to transfer their virtual currencies to the bank's control by creating new private keys for the bank to hold, said T. Head.
Other states have also seen the introduction of stablecoin legislation such as the one recently passed by Wyoming.
