The U.S. state of Hawaii has seen a bill authorizing banks to hold digital assets in their custody pass the first reading in the country's State Senate, Cointelegraph reports on January 25th.
The bill, introduced by five state senators, has been presented on January 17th and has now, after passing its first reading, been referred to the committees on Judiciary and Commerce, and Consumer Protection and Health. The bill outlines the conditions under which a bank would be allowed to provide digital asset custody services, as well as "the safekeeping and management of customer currency and digital assets through the exercise of fiduciary and trust powers under this section as a custodian and includes fund administration and the execution of customer instructions.”
This new bill has surprisingly managed to gain support on both "sides" of the Hawaiian State Senate, as one of its supporters is the only Republican representative in the State Senate, and we've seen that the Republican's aren't usually too keen on crypto and other forms of digital currencies. Even though crypto custody services aren't too interesting to your average investor, their appeal is not lost on large and institutional investors and hence the creation of a clear and transparent framework could play a significant role in adoption of crypto in this part of the U.S.