Flood’s next plan of action is to push for bills intended to make his district a FinTech hub
Nebraska state senator Mike Flood, sworn in just earlier this month, has introduced the Transactions in Digital Assets Act and Adopt the Nebraska Financial Innovation Act to the state’s 107th Legislature. The crypto-friendly legislation lays out guidelines to enable state banks to be able to offer custody for digital assets.
The bills, if passed by the legislature, could lay the foundation towards developing Nebraska into the next regulatory safe haven for FinTech firms in the United States and attract innovators from abroad.
Republican Flood also proposes the creation of financial institutions dealing in digital assets whose “charter, operation, supervision and regulation” is determined by the state. He argues through the proposed bills that such measures would give local courts the jurisdiction to hear claims in both law and equity relating to digital assets.
The proposed legislation is now expected to move for consideration by a committee before being introduced in the state legislature.
The second bill explains that the rapid innovation of blockchain and digital ledger technology, including the growing use of virtual currency and other digital assets, has resulted in many innovators and consumers being unable to access secure and reliable banking services. It adds that this has hampered the development of blockchain services and products in the marketplace.
“Many financial institutions in Nebraska and across the United States [refuse] to provide banking services to blockchain innovators and customers and also [refuse] to accept deposits in the United States currency obtained from the sale of virtual currency or other digital assets”, the bill explained.
Senator Flood, who was the speaker of the Nebraska Legislature until 2013, said that his next plan of action was to push for bills intended to make his district a FinTech hub. He further described the crypto market as a “great opportunity” for Nebraska in a meeting of the Norfolk Chamber of Commerce’s Governmental Affairs Committee last Wednesday.
“This is the future,” said Flood. “To be on the cutting edge of [crypto], I think, is good for us. We need to be a leader in FinTech. We in Norfolk have as much right to this new market as any other place in America”, he explained.
Currently, a July 2020 legislation by the Office of the Comptroller of the Currency enables federal banks to provide custody for cryptocurrency. If successful, Senator Flood’s initiative will extend this benefit to all state-chartered banks in Nebraska.
Keep updated with our round the clock and in-depth cryptocurrency news.
Unsub anytime
No SPAM ever!
After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.
Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services.
Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.
CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.
When trading in stocks your capital is at risk.
Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.
Bill allowing state banks to custody digital assets proposed by Senator Flood
