- If passed, a new bill SB2594 would allow Hawaiian banks to hold cryptocurrency
Five Hawaiian senators have sponsored bill SB2594, which would allow Hawaiian banks to essentially become crypto custodians. More specifically, if the bill passes, Hawaiian banks would be able to hold virtual currencies, digital consumer assets, and other open blockchain tokens. Simultaneously, the bill would pave the way for Hawaiian courts to hear digital asset claims, giving legal protection to citizens who hold cryptocurrency.
This would be a major step forward since in general, United States banks are wary to participate in cryptocurrency activity due to regulatory uncertainty. Further, in Hawaii, crypto businesses have struggled to function, since any crypto money service business is required to hold fiat reserves equal to their crypto holdings. This harsh rule has caused even big and reputable exchanges like Coinbase to avoid Hawaii.
Thus, if this law passes banks would be able to fill the crypto services void in Hawaii, with banks being able to offer both crypto wallet and exchange services.
That being said, it remains to be seen if this bill will be ratified into law.
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