The Senate of Virginia in America reportedly granted unanimous approval to a bill amendment request – enable traditional banks in the Commonwealth of Virginia rolling out virtual currency custody offerings.

Specifically, Delegate Christopher T. Head initially put up the proposal of the bill (House Bill No. 263) in January this year, looking to get the adjustments – making it possible for eligible banks to release crypto custody offerings – legally greenlit. 

“A bank may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws.”

The bill reportedly passed the Senate via a 39-0 vote in favor, and is anticipating the official enactment into law by Governor of Virginia Glenn Youngkin. 

Banks that have plans down their pipeline to roll this service out to customers will be required to abide by three particular requirements referred to in the bill. implement effective risk management networks, obtain adequate insurance coverage and release an oversight program to deal with risks related to crypto. 

Nonetheless, the Senate will reportedly make it mandatory for the clients of the banks to maintain direct control of their public and private keys related to their virtual currency. 

“Acting in a fiduciary capacity, the bank shall require customers to transfer their virtual currencies to the control of the bank by creating new private keys to be held by the bank.”

Different states like Wyoming have also recently witnessed a release of legislation for a state-issued stablecoin.

In February, the House Committee on Financial Services reportedly held a debate regarding whether regulations on stablecoins and crypto assets should be addressed at the state or federal level.