Louisiana Banks Allowed to Offer Bitcoin and Crypto Custodial Services
As the market for cryptocurrencies grows and digital currencies become more extensively used, a number of states in the United States are looking at methods to include cryptocurrency and digital currency transactions into the operations of their respective financial institutions. The cryptocurrency analyst Dennis Porter confirmed on June 21 that one of these efforts is a bill that the governor of Louisiana, John Bel Edwards, recently signed. This bill gives financial institutions in Louisiana the ability to custody Bitcoin (BTC) and other digital assets on behalf of their customers.
Indeed, it is stated in bill “No. 802,” which was sponsored by Louisiana State Representative Mark Wright and backed by the Pelican Center for Technology and Innovation, as well as its director Eric Peterson, who also shared the news, that the following would occur if the measure were to become law:
“It should be possible for financial institutions and trust organizations to act as custodians of digital assets. It should also be possible to offer criteria and processes, and it should be possible to supply associated things.”
According to the language of the proposed legislation, “the safeguarding or custody of virtual money or other assets by a financial institution or trust organization” is what is meant by “custody services.” In the meanwhile, Wright, who is well-known for his enthusiasm for cryptocurrencies, has also introduced the crypto-friendly measure “No. 1010,” which, if passed, would make it possible for the state to have unregulated industrial power zones.
If this measure is passed into law, it would enable a governing authority to petition the state land office “to designate a tract of land within the parish as a power zone.” This will only be possible if the bill is signed into law. Peterson believes that by taking this action, the state of Louisiana will become an appealing location for Bitcoin miners.
It is also important to note that there is no shortage of crypto proponents among U.S. politicians, like Wyoming Senator Cynthia Lummis, who has just formally brought to the United States Congress a crypto regulation measure that would completely incorporate digital assets into the US financial system.
Other politicians with crypto-related agendas include senate contender Bryan Solstin, who vowed to concentrate on making Bitcoin legal currency in the country should he be elected, which would make the United States one of the few governments in the world to do so. Other politicians with crypto-related agendas include Richard Blumenthal, who is running for governor of Connecticut, and Chris Murphy, who is running for governor of Connecticut.
Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.