US State Passes Legislation Allowing Financial Institutions To Offer Crypto Custody Services

The US state of Louisiana is allowing financial institutions and trust companies to provide custody services for cryptos.

Last week, Democratic Governor John Bel Edwards signed a bill mandating participating Louisiana financial institutions must “implement effective risk management systems” and adequately insure the crypto assets they custody, whether in a fiduciary or non-fiduciary capacity.

The bill, which becomes effective on August 1st, passed unanimously in both chambers of the state’s legislature before signing.

Louisiana isn’t the first state to enact a crypto-related policy. In March, Washington state passed a bill to establish a new work group tasked with exploring the possible uses of and policies for blockchain technology across a wide range of industries and public sectors.

“We are sending a clear message that Washington is ready to start working with the private sector to advance this technology for the benefit of all Washington residents, employers and workers.”

In mid-February, Colorado became the first US state to accept crypto assets for payment of taxes. Texas also created a working group to oversee the nascent sector’s expansion last September.

Back in early 2019, Wyoming became the first state in the nation to recognize property rights for cryptocurrency owners.

Featured Image: Shutterstock/Nikki Bridges/Fotomay