The governor of Louisiana has signed a bill that will permit financial institutions to offer crypto custody services.
The bill allows any financial institution or trust company to provide customers with crypto custody services if adequate risk management and compliance measures are in place.
The entities may also provide custody services through third-party service providers, making the move much easier for banks. The overall sentiment in the bill suggests that lawmakers want crypto services to flourish, but only if financial institutions are prepared to implement safety measures.
Louisiana bill sponsored by State Representative
The bill was signed by Governor of Louisiana John Bel Edwards, sponsored by Louisiana State Representative Mark Wright, and supported by the Pelican Center for Technology and Innovation. Many have cheered the news, saying it was forward-thinking and would have a positive impact.
This is one small step for the crypto market, but a step in the right direction nonetheless. It remains to be seen which banks and how many of them will make use of the bill, but it should prove an exciting time forward for state residents.
Lawmakers speeding up efforts on crypto
U.S. lawmakers have been warming up to crypto, though none have gone so far as to allow banks to allow crypto custody services. However, they do want an assessment of crypto investments in retirement accounts. Senators are planning to introduce a wide-ranging crypto regulation draft, and this rumored bill was leaked a few weeks ago.
Most of it was well-received by the crypto community, many of whom cheer regulation because it will add some legitimacy to the market. This, in turn, will draw more investors in.
Individual firms have also been doing more with crypto, like Fidelity adding bitcoin to 401(k) retirement plans. Grayscale’s CEO has said that pension funds are actively exploring crypto, which points to a growing interest.
With more regulation incoming, and at least some of it positive, 2022 could prove to be a watershed moment for the crypto industry. The market might be down, but there are hopeful signs for investors and projects that are actually trying to build novel financial services.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.