Republican Senator for the state of Nebraska, Mike Flood, introduced two bills that would allow state banks to offer custody services for digital assets. The laws would provide a regulatory framework for new technology companies that want to invest in the entity.
Flood introduced the Law on Transactions with Digital Assets, in which proposes the steps that each state bank should follow to offer bitcoin custody services and other digital assets
The bill also contemplates the creation of institutions that only work with cryptocurrencies and are backed by the state through regulations, supervision, statutes and operations.
The text highlights that banks interested in providing the custody service -if the law is approved- must notify their interest in adopting digital assets to the Director of Banking and Finance of Nebraska with 60 days in advance.
“Being at the forefront of this, I think, is good for us. We need to be leaders in fintech. We have as much right to this new market as any other place in the United States, “Flood told a local media last week.
Both proposals from Senator Mike Flood have no date for discussion in the legislative chamber. Source: Capitolist / Wikipedia
The second project, called the Nebraska Financial Innovation Act, seeks 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, has resulted in many innovators not being able to access safe and reliable banking services, what hinders the development of services and blockchain in the market “.
Both laws so far have no date for discussion. Republican lawmakers, a party to which Flood belongs, have a majority in the legislative chamber, raising the odds of passage of the proposed rule.
Wyoming Inspired Flood
Senator Flood assured that the start of operations of the Kraken exchange in the area of traditional regulated financial services, in the state of Wyoming, was inspiration motive to present the bills custody of crypto assets in order to route to Nebraska on the same trail.
As reported by CriptoNoticias, the state of Wyoming passed a law in 2018, to exempt service tokens that meet certain stipulations from taxes. Followed, in 2019, by the legalization of bitcoin and other cryptocurrencies such as fiat money, as this medium also highlighted.
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 noteworthy that Nebraska allows all the lawyers of that state receive payments, custodians and trusts in bitcoin, considering this practice not contrary to the ethical codes of the profession.