Bill > SB3184

This bill establishes a regulatory framework for digital asset banking in Hawaii, allowing state-chartered banks and credit unions to offer services related to digital assets, which are defined as virtual currencies, cryptocurrencies, and other digital-only assets. The Commissioner of Financial Institutions will oversee these activities, requiring institutions to maintain a one-to-one reserve of digital assets for customers, undergo independent audits, and implement robust cybersecurity and anti-money laundering programs. Institutions can provide digital asset custody services, meaning safekeeping of these assets, either in a fiduciary capacity (acting with trust powers) or a non-fiduciary capacity (solely for safekeeping), with clear disclosures to customers that these assets are not insured deposits. The bill also permits these institutions to engage in staking, which involves committing digital assets to a blockchain network to support its operations, and to facilitate digital asset transactions on behalf of customers in a fiduciary capacity. The Commissioner is granted enforcement powers, including issuing orders, imposing penalties, and suspending or revoking an institution's authority to offer digital asset services, with an effective date of September 1, 2026.