The Virginia Senate decisively approved a landmark bitcoin banking measure earlier this week, which had already passed the state's House of Delegates.
When the law reaches Republican Governor Glenn Youngkin's desk, legislators expect him to sign it within seven days.
H.B. 263 "permits Commonwealth institutions to provide virtual currency custody services so long as the bank has proper mechanisms in place to successfully manage the related risks," according to the bill's summary.
Moreover, Fox News Digital story stressed that the bill's sponsor delegate Chris Head, who is also a candidate for the state Senate, was motivated to introduce the measure after reading about how Texas was tackling regulation and who is allowed to keep the keys to one's bitcoin purse.
"By codifying the authority for state-chartered banks to become cryptocurrency custodians, Virginia will be the first state in the U.S. to do so through legislation," Head said.
In addition, he notes,
"In terms of functionality, the bill permits state-chartered institutions in Virginia to retain the keys to a person's bitcoin wallet, similar to how people utilize bank safety deposit boxes. Virginia will gain a major regional and national advantage as a result of this."
Cryptocurrency, according to the delegate, is a new economic asset with huge potential for economic growth in nations that adopt it.
For example, Head mentioned the advantages that bitcoin can provide to small firms, saying:
"As a small company owner, I'm always on the lookout for policies that have the potential to offer chances for job creation, business growth, and economic success." "Cryptocurrency has the ability to do exactly that."
On February 2, the House of Delegates easily supported the bill, and the state Senate approved it on March 3 by a vote of 39 to zero. In the rare event that Youngkin vetoes the bill, the legislature could override his choice.