CommonWealth Of Virginia And "House Bill No. 263"

The United States Senate unanimously accepted a bill amendment request that now authorizes traditional banks in the Commonwealth of Virginia to provide virtual currency custody services.

Delegate Christopher T. Head introduced the measure (House Bill No. 263) in January 2022, seeking an amendment that would allow authorized banks to provide cryptocurrency management services: 

“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.” 

“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.”

In this regard, Patrick McHenry, a North Carolina Representative and ranking committee member, suggested the committee investigate state-level regulatory frameworks in lieu of a full federal statute on stablecoins. Just last month, the House Committee on Financial Services debated whether stablecoin and digital asset rules should be handled at the state or federal level.