SILVER Act Targets New York Vault Monopoly — Major Reform in Sight
By John Nada·May 31, 2026·3 min read
The SILVER Act may upend New York's vault monopoly, decentralizing precious metals storage across the US for improved resiliency and competition.
"Everything about the gold and silver market looks modern. Real-time spot prices. Electronic trading. Fractional ownership. AI-driven allocation tools. And then there are the vaults," GoldSilver.com notes in their coverage of the SILVER Act.
The System Integrity through Licensed Vault Expansion and Resilience Act, or SILVER Act, is on the cusp of overhauling how the precious metals market operates in the US. Introduced on May 21, 2026, the bipartisan bill aims to decentralize the storage facilities critical to futures delivery. Currently, all approved vaults cluster around New York City, a practice dating back to the 1970s. Senators Jim Risch and Catherine Cortez Masto, representing metal-rich states like Idaho and Nevada, are spearheading this legislative effort, which seeks to require at least two depositories in each of the four continental US time zones.
For over five decades, the concentration of vaults in New York has quietly posed significant risks. A single cyberattack or natural disaster could paralyze metals settlement across the entire US market, as highlighted by Rep. Mark Harris during an April 2026 hearing. The bill promises to end this single-point vulnerability by distributing depositories more evenly, improving resiliency.
Cost is another factor driving the bill. With a few vaults controlling the market, storage fees have soared to the maximum allowable rates. By opening up the network to facilities in states like Texas and Nevada, the SILVER Act could unleash competitive forces, driving fees down to benefit individual and institutional investors alike.
Yet, it's not just about logistics and price. As GoldSilver.com points out, the Western US produces most of the nation’s gold and silver but lacks the infrastructure to facilitate direct delivery, forcing an inefficient route through New York. This reform would streamline the process, reducing transportation costs and logistical delays.
Support for the SILVER Act extends beyond Congress. The legislation enjoys backing from a broad coalition of industry players such as the Silver Institute and A-Mark Precious Metals, alongside a crucial nod from the CFTC. Chairman Michael Selig has already pledged to work on reducing concentration risks independently of Congress, indicating strong institutional support.
So, is the old vault system defensible? Not really. It's a relic of an era when trading floors dictated logistics. With electronic trading now dominating, the geographic concentration is increasingly seen as an outdated risk rather than a necessity.
The SILVER Act's journey is just beginning, with Senate committee referrals and possible CFTC action on the horizon. Whether or not the bill passes, its very introduction signals a shift in how we think about market infrastructure — not just as a logistical issue, but as a matter of national security and economic efficiency.