The Nebraska Legislature has advanced a bill that would authorize state banks to offer cryptocurrency services.
Senator Mike Flood, who introduced the bill said that it could create an environment that facilitates the creation of jobs while enhancing their “quality of life.” He added that the legislative bill could propel Nebraska to becoming a leader in the cryptocurrency landscape.
He noted that the complex nature of requirements by regulators has made compliance difficult for top players in the blockchain industry. This has further dissuaded many financial institutions in Nebraska from offering crypto services to blockchain businesses.
The bill will adopt the Nebraska Financial Innovation Act, to create digital asset depository institutions and provide charter, operation, supervision, and regulation of such institutions. Permitting banks to offer crypto services could present boundless opportunities to residents and blockchain firms.
Enacting the bill would mean that firms can register as cryptocurrency depositories provided they maintain an office in the state and have at least one resident on their board.
Reactions Over the Prospects of State Banks Offering Crypto Services
However, few legislators have expressed their fears over the crypto transition of the state. Senator Steve Erdman believes the bill is not in “a form where it could be passed.” Conversely, some residents believe that the bill could encourage the inflow of innovative ideas into the state.
According to Senator Matt Williams, “it’s a new world and we are exploring that world together with this legislation.” Senator Adam Morfeld said he supports other parts of the bill except for the part that excludes the credit union from participating.
Wyoming became the first state to charter special purpose depository institutions in 2020, which offers the necessary banking services to blockchain companies. The purpose was to fill the gap created by banks unwillingness to render banking services to cryptocurrency businesses.