Lawmakers have proposed that the only government-run bank in the us be allowed to be a crypto watchdog
A group of state lawmakers from North Dakota has proposed to allow a state-run bank in the state to become a crypto custodian.
The bank of North Dakota is the only financial institution of its kind in the United States, and was first established in 1919.
As per text of house bill number
Introduced on January 1167, "[t] he bank of North Dakota may provide supervisory services for digital currency and enforce digital currency exchange." Still, the keyword may be in this case, as legislation also calls on the bank to run a feasibility report before August 2022.
As stated in the legislation:
"During the interim of 2021-22, the bank of North Dakota will study the feasibility and required capacity of providing digital currency custodian services and implementing digital currency exchange
Before August 1, 2022, the bank will report the results of this research to the law management information technology committee.
Yet this move is not remarkable as it is indicative that state governments are allowing banking institutions within their jurisdiction to accept services related to crypto
Last year, the office of the us currency controller had issued a directive that federal chartered Banks were provided with the ability to serve as cryptocurrency custodian
At that time, the acting controller Brian Brooks said, "it is clear that the bank has to protect its most valuable assets.