Nebraska Passes Law Authorizing Digital Asset Bank Charters
On May 20, 2021, the Nebraska Legislature passed Senator Mike Flood's Legislative Bill 649, formally adopting the Nebraska Financial Innovation Act. The legislation authorizes the chartering of a new category of financial institution called Digital Asset Banks, which are specifically designed to enable banks to custody cryptocurrency and digital assets. Nebraska became only the second state in the nation to create this type of specialized financial institution charter, following Wyoming's lead.
The new charter framework opens the door for fintech and crypto companies to establish regulated banking entities in Nebraska focused on digital asset services. The move positions Nebraska as a competitive jurisdiction for crypto-banking innovation and signals growing state-level acceptance of digital asset custody within the banking system. The law establishes a regulatory framework under state banking authorities for oversight of these new institutions.
- State-level crypto banking charters create competitive alternatives to stalled federal fintech charter efforts at the OCC
- Growing state frameworks for digital asset banks accelerate the convergence of crypto and traditional banking infrastructure