A US state passes a law that lets financial institutions offer custody services for crypto

Louisiana permits financial institutions and trust organisations to offer cryptocurrency custody services.

Last Monday, Democratic Governor John Bel Edwards signed a measure requiring participating Louisiana financial institutions to “establish robust risk management procedures” and fully insure the crypto assets they hold, regardless of their fiduciary status.

The measure, which goes into effect on August 1, was approved unanimously by both houses of the state assembly before being signed.

Louisiana is not the first state to implement crypto-related legislation. In March, the state of Washington enacted a measure establishing a new work group charged with investigating the potential applications and rules for blockchain technology across a broad spectrum of industry and the public sector.

Washington is prepared to begin collaborating with the private sector to improve this technology for the benefit of all Washington citizens, companies, and employees.

Colorado became the first U.S. state to accept crypto assets for tax payments in mid-February. September of last year, Texas also established a working committee to supervise the sector’s growth. Wyoming was the first state in the US to recognise bitcoin owners’ property rights early in 2019.

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