Texas is one step ahead! Officially allows state-chartered banks to custody cryptocurrencies

On June 10, Texas banking regulators formally approved state-chartered banks to custody crypto assets.

The Texas Department of Banking wrote:

“ What virtual currency custody services a bank chooses to offer will depend on the bank’s expertise, risk appetite, and business model. For example, a bank may choose to allow customers to retain direct control of virtual currency while only storing a copy of the virtual currency. Alternatively, a bank may allow customers to transfer their virtual currency directly to the bank’s control, creating new private keys that are then held by the bank on the customer’s behalf. As with the custody service approach, there are a variety of secure storage options available to banks, each with unique characteristics related to security levels and accessibility. Banks must determine which storage option is best for the situation.”

Texas has been open to cryptocurrencies. Governor Greg Abbott recently promoted a new law on Twitter to promote the state's development with blockchain technology. In May, the Texas House of Representatives unanimously passed the "Virtual Currency Bill" that recognizes the legal status of virtual currencies, making it the second state to legalize cryptocurrency after Wyoming.

Texas is rich in wind energy, and with the rise of crypto mining, many companies plan to open mining farms in the state. BitTorrent previously reported that Marathon Digital Holdings will set up a 300-megawatt data center in Texas that can accommodate at least 73,000 mining machines. BIT Mining will also invest $25.74 million to build a crypto mining data center in Texas.

Rick Perry, former governor of Texas, once said in an interview: "I think Texas is and will continue to be a mecca for the North American mining industry. Diversified sources of cheap energy, load balancing plans and friendly regulations ensure that it will be a hot spot for Bitcoin mining for many years to come."

"When the east is dark, the west is bright." Although virtual currency mining has been hit in China, Texas' friendly and clear regulations have created a good business environment for cryptocurrency practitioners. In the near future, perhaps more crypto companies will move to Texas.