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Committee holds bill expanding definition of regulated financial institutions to include non-depository trust firms
Summary
Senate Bill 376, which would amend Rhode Island's regulated-institution definition to include non-depository trust companies (a change prompted in part by interest in crypto exchange-traded products), was discussed and held for follow-up while regulators and industry explore options.
Senate Bill 376, a proposal to amend the state’s definition of regulated financial institutions to include non-depository trust companies, was discussed March 25 and held by the Senate Commerce Committee while regulators and industry investigate whether regulatory or administrative routes can address the issue.
Sponsor Senator DePalmer framed the bill as a response to questions about whether certain financial products — including crypto exchange-traded products (ETFs) and related trust arrangements — can be offered to Rhode Islanders under current law. He said Fidelity and the Department of Business Regulation (DVR) had been working with him on potential language and that the parties expected to report back soon with options. "I ask that you not pass this bill tonight," he said, noting ongoing conversations between DVR, Fidelity and stakeholders.
Committee members expressed caution about moving quickly on measures touching crypto and trust regulation given recent national headlines and concerns about oversight. A senator raised questions about whether DVR could address the issue by regulation rather than statute; DePalmer and DVR representatives indicated regulatory approaches were being explored.
The committee recorded a motion to hold the bill for further coordination among DVR, Fidelity and legislative staff. No numeric roll-call was announced in the hearing transcript.
