Nebraska Passes a Crypto Banking Bill
While at the Federal level, regulators can’t seem to wrap their heads around Bitcoin and crypto, still, on the state level, significant strides have been made towards the adoption of cryptocurrencies.
Nebraska is the latest one whose unicameral state legislature has passed a bill to create a state bank charter for digital asset depository institutions, similar to Wyoming’s special purpose depository institutions such as Kraken Financial and Avati Financial.
Bill 649, which is now headed to Nebraska Gov. Pete Ricketts, would create a charter that will provide institutions with places to custody their crypto assets,
“When the bill was introduced in January, there was a distance between the banking industry and the digital asset deposit institutions’ proponents,” said state Sen. Matt Williams, chairperson of the legislature’s Banking, Commerce and Insurance Committee. “It was 18 weeks of constant negotiations,” with the largest disagreement about using the word “bank.”
As such, unlike Wyoming SPDI banks, the Nebraska bill would require crypto-related institutions to use “digital assets” before “bank.”
Additionally, Nebraska’s digital asset banks won’t be allowed to accept fiat deposits. They also have a minimum reserve capital requirement of $10 billion.
Both Wyoming and Nebraska’s digital asset banks cannot lend in fiat and are required to hold 100 of its assets in reserves. Digital asset banks in Nebraska are allowed to apply for access to the Federal Reserve’s payments system.