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Nebraska Senator Proposed New Bills Giving Bank Power to Offer Crypto Custodial Service

By Robin Wong | January 26, 2021

The Republican senator from Nebraska Mike Flood has reportedly put up new pro-crypto bills for approval that, if authorized, would establish the state as a friendly territory, regulation-wise, for crypto. 

Specifically, Mike Flood has reportedly proposed the new bill – dubbed Transactions in Digital Assets Act and Adopt the Nebraska Financial Innovation Act to the state’s 107th Legislature.

The two bills reportedly look to establish guidelines for state banks to have the power to offer custody features, apart from creating financial institutions associated with crypto assets, for which Nebraska would offer “charter, operation, supervision, and regulation”. 

The measures would additionally equip local courts jurisdictional power to hear claims “in both law and equity relating to digital assets.”

The proposed legislation reportedly has a primary goal of dealing with the issue of US-based top-tier banks showing discrimination against businesses and individual customers using crypto.

“The rapid innovation of blockchain and digital ledger technology, including the growing use of virtual currency and other digital assets, has resulted in many blockchain innovators and consumers being unable to access secure and reliable banking services, hampering development of blockchain services and products in the marketplace,” The second bill reportedly claimed. 

“This is the future. To be on the cutting edge of [crypto], I think, is good for us. We need to be a leader in FinTech. We in Norfolk have as much right to this new market as any other place in America.” Flood reportedly shared his intentions for the two proposed bills, to turn Nebraska into a FinTech-focused territory.

During a meeting of the Norfolk Chamber of Commerce’s Governmental Affairs Committee, Flood – who was formerly a member and speaker of the Nebraska Legislature and stepped down in 2013 – reportedly views crypto as a market that comes with “great opportunity” for Nebraska.

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