Nebraska lawmakers have enacted a law allowing state-chartered banks to provide digital currency custody services, cementing the state’s position as an emerging center for the digital currency industry.
The Nebraska Financial Innovation Act requires digital asset depositaries to be regulated to hold digital currency and a new state banking charter that covers digital asset services.
The bill garnered nearly universal support from legislators, passing 46-2.
Nebraska will provide “charter, operation, supervision, and regulation” for banks that want to offer digital asset depositaries, according to the law, which applies to institutions chartered in the United States as well as those chartered in other countries.
Senator Flood has been a vocal proponent of the digital currency area, citing the sector’s potential for job creation and economic growth. He called digital money a “wonderful chance” for Nebraska in January.
“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.”
The Act provides digital currency custody services to state-chartered institutions, which were previously only available to federally chartered banks.
Nebraska joins Wyoming as the only state to adopt such regulations for digital currency service providers with the new law.