Representative Christopher T. Head called for an amendment to allow banks that are qualified to provide cryptocurrency services. The Head introduced the Bill in January 2022 (House Bill No. 263).
The Virginia Senate in the United States has unanimously approved a request to amend a bill that would allow traditional banks currently operating in the Commonwealth of Virginia to provide virtual currency custody services.
Representative Christopher T. Head called for an amendment to allow banks that are qualified to provide cryptocurrency services. The Head introduced the Bill (House Bill No. 263) in January 2022:
“As long as the Bank has 26 appropriate protocols in place for effective risk management and applicable laws, the Bank may provide virtual currency custody services to its customers.”
The bill was passed with 39-0 votes in the Senate and is expected to be signed into law by Virginia Governor Glenn Youngkin. Banks wishing to provide this service to their clients must meet three specific requirements set out in the bill – implement effective risk management systems, have adequate insurance coverage, and launch a monitoring program to address risks associated with cryptocurrencies.
However, Senate Bank customers want to have direct control over the public and private keys associated with their virtual currency:
“The bank customer will need to transfer their virtual currencies to the control of the bank, which will maintain the reliability capability.”
Other states such as Wyoming have recently introduced legislation for state-issued stable currencies.
Citing a report from the President’s Working Group on Financial Markets, Jean-Nellie Liang, Undersecretary for Home Affairs in the Treasury Department, said the US dollar – the stable currency – state and federal chartered banks – should adhere to the same standards. Insured Depository Companies.