Virginia also wants its share of crypto and Bitcoin. All within a competition that now involves several US states, all of which would like to aim to become a sort of hub for the sector of the moment.
The Virginia Senate passed a bill later this week that is expected to be signed by Governor Glenn Youngkin next week. According to the unanimity of economic commentators, this would be a fundamental law for the adoption, also in terms of investment, of cryptocurrencies. The banking sector is involved, which will be fundamental, at least in Virginia’s vision, in this epochal transition.
This is excellent news for the entire crypto sector, despite the fact that it is a law of perhaps lesser scope than those we have seen elsewhere.
Virginia wants to become a leader in the cryptocurrency custody industry, what will they do?
The mainstream acceptance of cryptocurrencies will pass, at least in the business and corporate context, also by the participation of banks. And this is where Virginia wants to intervene, which becomes the first US state to regulate the custody issue, which concerns not only Bitcoin but also other cryptocurrencies.
Under the law that has just been passed by the Senate and will soon be promulgated by the governor, banks will be able to start offering custody services as long as they implement the necessary security tools. A law that may seem irrelevant to those who do not closely follow the sector, but which in reality has very interesting and certainly important implications for the sector.
Banks, protected by a law that clearly allows this type of activity (and with requests that came from the banking sector) will allow large, medium, and small businesses to comfortably hold their cryptocurrencies in the balance sheet, with custody that, like any type of regular patrimonial activity, will be entrusted to a bank. A step forward that also raises the stakes between the various US states that are aiming to become a fundamental hub for the world of Bitcoin investments.
What kind of repercussions will this law have on the market?
It will not have any in the short and very short term, but it will still be an important step towards normalization in terms of investment in cryptocurrencies. The absence of tools and clear legislation is one of the main deterrents to investments in the sector by structured entities, with the law just passed in Virginia that will be able to offer a clear framework within which to move.