Nebraska lawmaker introduces bill to allow state banks to store cryptocurrencies

U.S. Senator Mike Flood of Nebraska has introduced new crypto-friendly legislation that would make the state the next regulatory haven for fintech companies.

He introduced the Digital Asset Exchange Act to the 107th Legislature today and passed the Nebraska Financial Innovation Act. The two bills provide guidelines for state-owned banks to regulate digital assets, in addition to establishing financial institutions engaged in digital asset transactions, and Nebraska will provide "chartering, operation, supervision and regulation" for these institutions. These measures will also give local courts jurisdiction to hear "legal and equitable" claims related to digital assets.

The proposal also aims to address discrimination by major U.S. banks against business and individual customers who use cryptocurrencies.

Last July, the Office of the Comptroller of the Currency announced that it would allow federally chartered banks to provide custody services for cryptocurrencies.

While Flood’s proposed measure would not apply to federally chartered banks in Nebraska, the proposal appears to seek to extend the benefit to state-chartered banks. (Cointelegraph)