Cryptocurrency Legislation in Nebraska and Illinois
Written by: Mary McCarthy
Following in Wyoming’s footsteps, Nebraska and Illinois both have their eyes set on making cryptocurrency a major industry in their states. Recently Nebraska became the second state to allow for digital asset banks to form charters in the state. Illinois is on the same page, with similar digital asset legislation pending.
In Nebraska, Bill 649 or the Nebraska Financial Innovation Act was recently made law. The legislature creates a charter system for banks to support cryptocurrency in the state of Nebraska. The legislation says, “Authorizing digital asset depository institutions to be chartered in Nebraska will provide a necessary and valuable service to blockchain innovators and depositors, emphasize Nebraska’s partnership with the technology and financial industry, safely grow this state’s ever-evolving financial sector, and afford more opportunities for Nebraska residents.”
Similar pending legislation in Illinois aims to create a depository trust for digital assets and allow banks to hold digital asset accounts for clients. House Bill 3968 would enact a foundation for crypto regulation in Illinois, which ultimately protects investors and may further legitimize the rapidly evolving digital asset class. Allowing charters for cryptocurrency could bring even more cryptocurrency transactions to major cities like Chicago.
Both Nebraska and Illinois are eager to become hubs for cryptocurrency and blockchain technology. The future of cryptocurrency looks bright, and establishing a regulatory framework early may set these states apart as pioneers in the digital asset arena. Consumer and investor protection are the primary goals with most of the pending cryptocurrency regulations in the country. Cryptocurrency regulations are relatively new and will likely continue to develop in each state for the foreseeable future as blockchain technology becomes a part of everyday life across the globe.
DiCamillo, N. (2021, May 21). Nebraska Legislature Approves Framework for Digital Asset Banks. CoinDesk. https://www.coindesk.com/nebraska-legislature-approves-framework-for-digital-asset-banks.
Financial Innovation Act signed into law, Nebraska becomes second state allowing crypto banks. Sandhills Express. (n.d.). http://sandhillsexpress.com/state-news/financial-innovation-act-signed-into-law-nebraska-becomes-second-state-allowing-crypto-banks-ncnidstory43961453/.
Heather Morton, L. S. (n.d.). Cryptocurrency 2021 Legislation. https://www.ncsl.org/research/financial-services-and-commerce/cryptocurrency-2021-legislation.aspx. Ltc. (n.d.). NEBRASKA LEGISLATURE. Nebraska Legislature – Home. https://nebraskalegislature.gov/.