Nebraska Allows Banks to Hold Cryptocurrency

The governor of Nebraska, Pete Ricketts, signed into law a bill allowing local banks to hold cryptocurrency.

We’re thrilled that #LB649, spearheaded by #Telcoin, has been signed into law in #Nebraska. Our deepest thanks to Senator @MikeFloodNE and the many supporters of this landmark legislation. An exciting journey lies ahead for #digitalassets in the Cornhusker state! pic.twitter.com/3wfqAM6dSN

— Telcoin (@telcoin_team) May 26, 2021

The measure was developed by Republican Senator Mike Flood in collaboration with Telcoin. It contemplates creating a new state banking charter, focused on financial services powered by digital assets.

The Nebraska Financial Innovations Act allows credit institutions to operate cryptocurrency custodians. These institutions may be registered in the United States or abroad.

Telcoin—a telecommunications-focused blockchain company that developed a remittance system on the Ethereum network. It was actively involved in crafting the bill, one of Flood’s early initiatives as a senator.

In July 2020, the Office of the Comptroller of the Currency, part of the U.S. Treasury, allowed national banks to hold cryptographic keys from cryptocurrency wallets. The Nebraska law extends this right to state-registered institutions.

In November, Wyoming granted a banking charter to the cryptocurrency startup Kaitlin Long’s Avanti.

Earlier in May 2021, Nebraska state Senator Carol Blood proposed using blockchain to track the provenance of products: from farms to store shelves.