Lawmakers in Hawaii have filed a bill that would allow banks in the region to provide custody for crypto assets.

Five senators from the Hawaii state proposed this bill to seek authorization for banks to seek crypto services. If this ambitious bill is passed, it will make it legal for Hawaiian banks to hold digital securities, virtual currencies, digital consumer assets and other open blockchain tokens for their customers.

Among the five senators, four of them were Democratic and the remaining one was a Republican. The Democratic senators include Gil Riviere, Sharon Moriwaki, Stanley Chang, and Les Ihara, while Kurt Fevela is the Republican senator.

The bill is now going to be reviewed by Senate Committee on Commerce, the Senate Committee on Judiciary, and Consumer Protection and Health.

Back in 2017, Hawaii’s Division of Financial Institutions required crypto-licensed businesses to hold cash reserves equal to their crypto holdings held on behalf of their customers. The law forced many crypto exchanges in the state, including the giant Coinbase, to shut down.

This newly proposed bill could pave way for banks in the state to offer digital services alongside their existing ones.

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