Texas authorities allow banks to store cryptocurrencies

The Texas Department of Banking has allowed state-chartered banks to hold cryptocurrencies. The regulator’s notice dated June 10 says so.

The department noted that financial institutions “have long provided custody services for a range of assets.” The notice merely confirms banks’ ability to work with cryptocurrencies within the existing legal framework.

The types of custodial services may vary depending on the institution and its business model, the department added.

“For example, a bank may allow a client to maintain direct control over their own cryptocurrency and simply store copies of private keys. […] Alternatively, the bank may require the client to hand over their cryptocurrency directly under the organization’s control,” the document says.

Governor Greg Abbott announced plans to create a regulatory framework for the development of cryptocurrencies and blockchain technology in Texas.

Earlier in May, Nebraska authorities allowed local banks to store digital assets.

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