Hawaii’s lawmakers file bill that allows banks to offer crypto-custody services

Hawaiian lawmakers have recently submitted a bill that, if passed, would enable banks to provide crypto custody services. The bill, SB2594, would officially make it legal for Hawaiian banks to hold digital securities, virtual currencies, digital consumer assets and other open blockchain tokens for their customers.

State lawmakers Gil Riviere, Sharon Moriwaki, Stanley Chang, Les Ihara, and Kurt Fevella sponsored the bill. The bill is yet to be reviewed by Senate Committee on Commerce, Consumer Protection and Health (CPH) and the Senate Committee on Judiciary (JDC).

The bill also made a note of private keys and multi‑signature wallets. It stated,

“A secured party, or an agent, custodian, fiduciary, or trustee of the party, has the exclusive legal authority to conduct a transaction relating to a digital asset, including by means of a private key or the use of a multi‑signature arrangement authorized by the secured party.