Most states are known for something.
California? Tech. New York? Finance. Want to form a corporation with excellent tax and liability advantages? Nevada. Nebraska may just join that list as a place serious crypto banks may want to be.
Sources say that the bill was drafted by Telcoin, and that they have promised to move their operations from Japan to The Great Plains state.
Nebraska was not the first state to do this, Wyoming beat them to the punch with Kraken. While it is still way too early to say which state will be the new home of crypto banks in The United States, it will be worth keeping an eye on Nebraska.
Here is what people are saying:
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
Decrypt had more on the landmark legislation:
LB649, or the Nebraska Financial Innovation Act, was introduced in January by the newly-elected state senator Mike Flood. According to a press release, the legislation was drafted by a Japan-based crypto company called Telcoin, which promised to relocate to Nebraska if the bill became law.
Flood also introduced a second crypto-oriented bill in January, LB648, which deals with smaller-scale changes to regulations for crypto companies, and has yet to gain traction.
Wyoming passed similar legislation last year, paving the way for Kraken to become the first official state-level crypto bank in the US.
Coin Telegraph went more in depth:
Signed into law as Legislative Bill 649, the Act means that financial institutions — e.g., banks, building and loan associations — can operate digital asset depository businesses, for which Nebraska will provide “charter, operation, supervision, and regulation.” Under the terms of the Act, these institutions can be chartered in the United States or by a foreign state agency.
Telcoin, a telcoms-focused blockchain firm that operates services on the Ethereum network, has been actively involved in drafting the bill. The company found a ready partner in Senator Flood, who began the year by pledging to make Nebraska into a fintech hub and has a parallel initiative, the Transactions in Digital Assets Act, underway. He told reporters in January:
“One of the things that we need to do is create high-paying, high-skilled jobs. We also need to create jobs that bring wealth into the community […] I have been working with someone I’ve known for a very long time and he’s in the cryptocurrency business. He has an interest in locating in Norfolk. There is great opportunity in this area.”
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