The governor of the U.S. State of Louisiana John Bel Edwards has signed the digital assets bill that was legislated in the state. The bill comes as a reprieve to the crypto community following an arduous month.
What is the Digital Assets Bill
In a bid to respond to the growing uptake of cryptocurrencies, the Louisiana legislature took action by passing a new bill. The new bill, house bill number 802, was backed by representative Mark Wright. The bill’s purpose; Making amendments to chapter 22 of title 6 of the Louisiana Revised Statutes of 1950.
The legislation allows banks to provide custodial services for digital assets. Thus, as provided by the legislation, financial institutions will be able to join the digital revolution. Financial institutions such as banks in Louisiana will be able to hold cryptocurrencies such as bitcoin and other digital assets for their customers.
The bill is one of several pro-crypto bills passed in the state. Bill number 802 will modify definitions that allow banks to act as custodians of digital assets for customers. Additionally, the bill will outline procedures and parameters that will be used by the government bodies. These parameters will include state and federal regulatory standards, rulemaking, and any other affiliated matters.
This monumental bill will work alongside other bills such as the House Resolution 180 (HR 180). This secondary bill was recently created to facilitate the study of the use of cryptos in raising campaign contributions. The bills showcase an increase in states studying the use of cryptos in various sectors of the government.
A Change in Fortunes
The move is definitely a monumental one as it has provided a much-needed change for the crypto economy in the state. By being the first state to provide its residents with such opportunities, Louisiana is keen to be the hub of America’s digital economy. The pro-crypto bill gives crypto users the backing they have desperately sought from the government.
The bill also acts as a precedent for other states with crypto legislation still being a contentious issue. In the past, government action and inaction have slowed down the growth of the digital economy. The lack of a policy framework has led to much uncertainty. However, with such a bill, many more states are sure to explore the benefits that will arise from crypto use. As things stand, 17 states have deployed studies into the legalization, use, and regulation of cryptocurrencies. Therefore, it is only a matter of time before other states follow suit and legalize cryptos such as bitcoin.
The move will serve as a windfall for crypto users and institutions alike. Given the recent market crash, the Louisiana bill comes as a heaven-sent windfall for most users. The move will benefit both the financial institutions and users while being under government oversight. The use of traditional institutions will likely play out as a critical point of regulation. As more studies are made, the general uncertainty around America’s stance seems to be clearing up.