The Law on Transactions with Digital Assets has no date for discussion. Nebraska Is seeking to follow in Wyoming’s footsteps in passing a crypto act.
Republican Senator from Nebraska, Mike Flood, introduced two projects that would permit state banks to offer custody services for digital assets. The laws would provide a regulatory framework for new technology companies interested in investing in said entity.
Flood presented the Law on Transactions with Digital Assets. He proposes the steps that each state bank has to follow to create a favorable environment to offer custody services regarding bitcoin and other digital assets.
The bill also considers creating institutions that will work exclusively with cryptocurrencies and receive back-up by the state through regulations, supervision, statutes, and operatives.
The text highlights the crescent interest of banks in being providers of custody services. If the law receives approval, such organisms must notify their interest in adopting digital assets to the Nebraska Director of Banking and Finance within 60 days in advance. Nebraska will turn into a source for digital currency operations if both projects receive a green light from the government.
“Being at the forefront of this, I think, is good for us. We need to be fintech leaders. We have as much right to this new market as any other place in the United States, “Flood told a local media last week.
The second project called the Nebraska Financial Innovation Act, pursuits to achieve that banks willing to accept cryptocurrencies do not become “victims of discriminatory practices,” as has happened with other banks in that country.
According to the text, “the rapid innovation of blockchain and the increasing use of virtual currencies and other digital assets are becoming an obstacle for many innovators to access secure and reliable banking services, which obstructs the development of services and blockchain in the market.”
Both laws’ date for a discussion is still unclear. Republican lawmakers, a party to which Flood belongs, are a majority in the legislative chamber, raising the odds of passage of the proposed rule.
Wyoming Inspired Flood’s Interests in the Crypto-World
Senator Flood said that the start of operations of the Kraken exchange in the area of traditional regulated financial services in Wyoming inspired him enough to present the bills for the custody of crypto assets to put Nebraska on a parallel status.
Wyoming approved a law in 2018 to absolve service tokens that meet specific stipulations from taxes. The legalization of bitcoin and other cryptocurrencies also followed in 2019.
Kraken was joined last year by the financial group Avanti, becoming the second cryptocurrency company to obtain an official banking license to operate in Wyoming.
It is essential to consider that Nebraska allows the receiving of payments, custodians, and other trusts in bitcoin to every active lawyer in the state. This practice does not transgress any ethical code nor goes in contrary to other laws.
By: Jenson Nuñez
