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Crypto-friendly Bill to Allow Digital Assets Custody by State-chartered banks Officially Enacted

By Robin Wong | May 28, 2021

A pro-crypto law – jointly authored by a crypto company and initially proposed by Republican state senator Mike Flood in January – has reportedly been officially enacted in Nebraska. 

Specifically, The bill – dubbed “Nebraska Financial Innovation Act” – was reportedly among Senator Flood’s first projects, rolled out gradually throughout a fortnight after his official appointment. 

The bill will reportedly give greenlight to statewide regulation of virtual asset depositories in Nebraska, via forming a new state banking charter, particularly devoted to digital asset-backed financial features. 

The votes from Republican lawmakers won Democrats in a near 2-to-1 ratio (32 to 17) in the state legislature, and 46–2 in the last week of May’s vote. 

The Act, officially enacted as Legislative Bill 649, reportedly offers financial establishments, nominally banks, building and loan associations, the ability to facilitate digital asset depository businesses,or which Nebraska will provide “charter, operation, supervision, and regulation”. Per the Act, said establishments can be chartered in America or via a foreign state agency.

Telcoin – a telecoms-centric blockchain entity that supports Ether-based services, has been putting extensive resources in producing the bill. The firm acknowledged Senator Flood as a ready partner, who started out 2021 by giving his pledge to turn Nebraska into a fintech hub and is simultaneously working on another initiative, the Transactions in Digital Assets Act. 

“One of the things that we need to do is create high-paying, high-skilled jobs. We also need to create jobs that bring wealth into the community […] I have been working with someone I’ve known for a very long time and he’s in the cryptocurrency business. He has an interest in locating in Norfolk. There is a great opportunity in this area.”

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