Five senators from the US state of Hawaii have proposed a bill seeking to authorize banks to provide crypto services. The ambitious bill, if passed, would make it legal for Hawaiian banks to hold crypto assets for their customers.
Four Democratic and one Republican senator filed the bill.
Four Democratic senators and one Republican senator introduced the bill that would allow banks to acts as crypto custodians in the US state of Hawaii. Democratic senators include Gil Riviere, Sharon Moriwaki, Stanely Chang, and Les Ihara, and one Republican senator is Kurt Fevella that filed this bill. According to the new bill, banks in the state are required to maintain reserves, like a trust company under section 412;8-2020.
Hawaii is known for its strict crypto regulations.
In 2017, Hawaii’s Division of Financial Institutions made it necessary for crypto-licensed entities to hold cash reserves equal to their crypto holdings held on behalf of their customers. The law forced many crypto exchanges in the state to shut down, including Coinbase. The proposed bill could clear the way for banks in the state to offer digital services alongside their existing ones.