Nebraska Emerges as Trailblazer in Blockchain Legislation

At this time, legislators are enacting blockchain and cryptocurrency regulations at the state level. Sen. Eliot Bolster introduced the Blockchain Basics Act, a bill to safeguard various rights associated with cryptocurrencies and blockchain, in the Nebraska Unicameral Legislature on January 5. This development positions Nebraska as a leading state in these endeavors.

The legislation aims to ensure that Nebraskans have unrestricted access to cryptocurrency mining, the ability to store their cryptocurrency assets, and the capability to conduct cryptocurrency transactions.

Additionally, it establishes an exemption from state capital gains taxes for cryptocurrency transactions that do not exceed $200.

The legislation resembles a bill introduced in Missouri in December by Representative Phil Christofanelli. Both bills are sponsored by the Satoshi Action Fund, a non-profit organization that pressures legislators to introduce initiatives related to cryptocurrencies.

This bill, according to Dennis Porter, CEO and co-founder of the Satoshi Action Fund, is an extension of Mike Flood’s efforts before his “graduation” to Washington, D.C.

Flood was a co-sponsor and co-author of the Nebraska Financial Innovation Act, enacted in 2021, which authorizes banks, with state authorization, to become “Digital Asset Depositories” and trade and custody cryptocurrency.

According to Porter, Nebraska was the second state to enact this legislation, with further states expected to do so. Regarding X, Porter wrote:

“We plan to introduce 13 bills in 13 different states (at least) in 2024. Each time a bill is introduced, lawmakers in the state often hold a hearing to receive input from the public.”

Porter proposes that the fight for cryptocurrency adoption be taken to the state level as part of a nationwide strategy. He believes that crypto regulation could follow the path that cannabis regulation followed.