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Home CUs’ Virtual Currency Custody Services Bill Passes State Senate; League-Supported CDFI Bill Passes House

CUs’ Virtual Currency Custody Services Bill Passes Legislature; Off to Gov. Youngkin for His Signature

Authored By: Lewis Wood on 2/21/2023

The General Assembly has passed HB1727, credit unions’ virtual currency custody services bill, following a final unanimous vote in the House on Monday. The bill heads to the governor's desk for his signature, and if approved, it will become law. The governor has until March 27 to sign the measure.

"We appreciate the support our bill received through every stage of the legislative process," said League President/CEO Carrie Hunt. "I think passage of this measure is a testament to the effectiveness of our advocacy efforts prior to the start of the session and the good work of our credit unions on Credit Union Day. And while we celebrate passage of this measure, we also recognize other state-level issues that continue to be priority for credit unions and the League, including the authority to hold municipal deposits, enhancements for field-of-membership rules, and the authority for credit unions to acquire banks." 

HB1727 would permit any credit union in the Commonwealth to engage in virtual currency custody services to the same extent as any bank. Banks won this authority last session. It would allow credit unions to secure private keys for their members’ digital assets in a manner similar to a safe deposit box, with the member retaining control of the asset and the credit union simply securing it.

We are also pleased to see passage of SB1320, a measure that codifies the Virginia Community Development Financial Institutions Fund, originally created in the 2021 Appropriation Act, and establishes the Virginia Community Development Financial Institutions Program to carry out the purposes of the Fund.

Your League supports initiatives at the state level to aid CDFIs and we strongly supported SB1320 and its House companion bill, providing testimony in favor of the measures.

The Virginia Community Development Financial Institutions Program would provide grants and loans to community development financial institutions and other similar entities for the purpose of providing financing to small businesses, housing development and rehabilitation projects, and community revitalization real estate projects in the Commonwealth.

Credit unions have consistently demonstrated their commitment to serving the underserved and being a strong advocate for community development, and our CDFI credit unions have been among those at the forefront of such initiatives.

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