Cryptocurrency News

Nebraska Signs Legislation Authorizing State-Chartered Banks to Crypto Custody

A crypto-friendly bill – co-authored by a cryptocurrency firm and previously Introduced by Republican state senator Mike Flood Signed into law today – January – Nebraska.

Nebraska Financial Innovation Act One of Senator Flood’s first initiatives was introduced only two weeks after he was sworn in. It will authorize the regulation of digital asset depositories in the state by creating a new state banking charter in line with digital asset-backed financial services. Republican lawmakers outnumbered Democrats nearly two-to-one in the state legislature (32 to 17), and the numbers were 46–2 for this week’s final vote.

Signed into law as Legislative Bill 647, the act means that financial institutions – such as banks, buildings and loan associations – can operate digital asset depository businesses, for which Nebraska will provide “charter, operation, supervision and regulation” . Under the terms of the Act, these institutions can be chartered in the United States or by a foreign state agency.

Telcoin, a telecom-focused blockchain firm that operates services on the Ethereum network, has been actively involved Drafting of a bill. The company found a ready partner in Senator Flood, who started the year pledging to make Nebraska a fintech hub and take a parallel initiative, Transaction in Digital Assets Act, In the process. He Told Journalist in january

“One thing we need to do is create high-paying, high-skilled jobs. We also need to create jobs that bring wealth to the community. […] I am working with someone I have known for a very long time and is in the cryptocurrency business. He is interested in finding out in Norfolk. There is a great opportunity in this area. “

TelCoin’s press release today cited Flood welcoming TelCoin to Nebraska and saying that “this brand new charter sends the right message that Nebraska is open for business in this exciting new space.” While Crypto Custody Was Already Permitted Federally Chartered Bank in the United States Last July, the Nebraska Act would extend these rights to chartered institutions at the state level. The state of Wyoming is the only US state to have exempted Nebraska in this regard, Rent your first crypto bank Back in September 2020.