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Virginia Proposes Groundbreaking Cryptocurrency Banking Bill

Virginia Proposes Groundbreaking Cryptocurrency Banking Bill

the Virginia The Senate this week unanimously passed a groundbreaking cryptocurrency banking bill, which has already passed the state House of Delegates and which lawmakers expect Governor Glenn to Youngkin, a Republican, signs within seven days.

HB 263 “allows Commonwealth banks to provide virtual currency custody services as long as the bank has adequate protocols in place to effectively manage the associated risks.”

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Of the. Bill sponsor and state Senate candidate Chris Head, R-Roanoake, told Fox News Digital that Texas regulations gave him the idea for the bill.

“I came up with the idea for HB 263 last summer after reading about how Texas is addressing the cryptocurrency issue and who is allowed to hold the keys to their purse in cryptocurrency,” said Head. “Texas has decided to address this topic of cryptocurrency custodian services through its regulatory process. I have discovered that no state at that time, nor to date, has addressed the cryptocurrency depository services in a legislative manner.”

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“By codifying the ability of state-chartered banks to become custodians of cryptocurrency, it will make Virginia the first in the country to provide this ability to banks through legislation,” Head told Fox. NewsDigital. “Functionally, the bill allows Virginia state-chartered banks to hold the keys to its wallet in cryptocurrency, similar to how individuals use safe deposit boxes in banks. account, this will give Virginia a significant advantage regionally and nationally.”

“Cryptocurrency is something everyone should pay attention to,” the delegate added. “It is an emerging economic asset that is growing in popularity and has significant potential for economic development in regions that embrace it.”

Bitcoin, the largest cryptocurrency, by market value, traded near $40,000 as stocks saw volatility related to Russia’s invasion of Ukraine.

“As a small business owner, I am always on the lookout for the potential of policies to create opportunities for jobs, business development, and economic success. Cryptocurrency has the potential to do just that,” Head said.

He noted that legislation, rather than regulation, offers a more permanent solution to problems.

“In my nearly 11 years in the House of Delegates, I have seen the lasting impact a successful bill has when it comes to putting policy into state code versus to regulations that can be more easily changed or even completely reversed,” he said.

The House of Delegates passed the bill unanimously, 98-0, on Feb. 2, while the state Senate passed it, 39-0, on Thursday. In the unlikely event that Youngkin vetoes the legislation, the legislature could strike it down.

Virginia Governor Glenn Youngkin speaks during a press conference on an executive order establishing kindergarten to 12 lab schools at the Capitol Thursday, Jan. 27, 2022, in Richmond, Va. (AP Photo/Steve Helber/AP Newsroom)

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Macaulay Porter, spokesman for Youngkin, told Fox News Digital that “the governor will review the legislation when it comes to his office.”

In November 2021, federal banking regulators said they plan to clarify cryptocurrency banking rules in 2022.