Web3 Regulation: Nebraska introduces the “Blockchain Basic Act” bill

On January 5, 2024, the senator of the state of Nebraska, Eliot Bostar, introduced the bill 911 called “Blockchain Basics Act”, which aims to strengthen the regulation of the blockchain and crypto industry.

This is a very important bill proposal. With it, the rights of all companies working in Web3 are protected, as they still cannot rely on a clear and transparent legislative framework.

Over the years, the crypto community is gaining more and more awareness of the importance of regulation in order to grow in terms of adoption, and now it demands to be heard by various international governments.

The Blockchain Basic Act arrives in Nebraska in the midst of a pivotal moment for the cryptocurrency industry, with multiple approvals expected from the SEC for the launch of the first Bitcoin ET spot on the US stock exchange.

Let’s see all the details below.

Latest news on the crypto regulation front in Nebraska: “Blockchain Basic Act” bill proposed

In Nebraska, the aim is to regulate the crypto sector: on January 5, 2024, Nebraska State Senator Eliot Bostar introduced a bill called “Blockchain Basics Act” which seeks greater protection from the government for companies that establish their businesses in web3.

This bill is similar to the one recently introduced in Missouri and, according to the Satoshi Action Fund, another 11 states are expected to introduce similar regulations this year.

The Satoshi Action Fund is a non-profit organization that pushes legislators to introduce initiatives related to cryptocurrencies: Dennis Porter, CEO of the organization, has collaborated on the drafting of the document with Bostar and participated in other similar projects.

The act has several objectives: the main ones concern the need to guarantee the inhabitants of Nebraska to mine cryptocurrency without having specific licenses, while respecting existing noise pollution limits, to exercise custody of their Bitcoin resources, and to freely carry out transactions in crypto.

It also requires exercising custody of their resources in Bitcoin and freely conducting transactions in crypto, as well as legitimizing the management of a blockchain node with complete autonomy. 

It is worth noting how the staking services in the bill are not considered as securities in Nebraska.

Finally, reference is made to a particular exemption from state taxes on capital gains for cash-outs in crypto below $200

This move is fully part of a national strategy aimed at fighting for the mainstream adoption of blockchain technology through the regulation of the cryptographic industry.

According to Porter, the legislative tirade that the sector is facing could follow the same path as the regulation of cannabis.

To note how Bostar’s efforts in Nebraska come alongside another catalyst event for the fight for crypto rights: on January 4th, California state senator Steve Padilla presented two bills to create a “safe and ethical framework” for providers of artificial intelligence (AI) services working in the state.

The legislators of these States will have a lot of work to do in the coming weeks.

The importance of regulation in the cryptocurrency industry

While in Nebraska the government is asking for the approval of the “Blockchain Basic Act” to support the rights of companies operating on blockchain, in Washington D.C all eyes are on the headquarters of the Securities and Exchange Commission.

The federal authority responsible for overseeing the US markets will have to make a very delicate decision in the coming days regarding the approval or denial of the first Bitcoin spot ETF in the country.

After a long period of hostility against the sector, confirmed by the multiple attacks on cryptocurrency exchanges operating in the US such as Coinbase, Binance, and Kraken, the SEC could change its mindset in the near future.

On January 10th, the commission is expected to make its final statement regarding Ark Invest’s spot ETF, an investment fund led by the famous Cathie Wood: on that day, Gary Gensler and his team can only approve or deny the ETF, providing their explanations.

There don’t seem to be any elements to prevent the launch of the first Bitcoin listed fund on Nasdaq, but in any case, in case of rejection, in the following days the same federal entity will have to respond to the requests of other asset managers such as BlackRock, vanEck, Wisdomtree, Bitwise and Invesco.

All deadlines converge between January 10th and 15th, 2024.

The approval of the Bitcoin spot ETF seems to be only a matter of time, with several funds among those mentioned earlier that today have sent their FORM S-1 updates, sending shivers down the spines of crypto investors.

At the same time, the commissions that BlackRock and other competitors will apply to their Bitcoin investment vehicles have already been outlined, in case of approval from the SEC.

These range from 0.25% offered by ARK and Vaneck to 1.5% by Grayscale with most Fund Managers below 0.8%.

In particular, Vaneck has promised to donate 5% of its profits to the developers of the non-profit association Brink.

The launch of the spot Bitcoin ETF represents a milestone of extreme importance in the field of regulation: with it, the crypto asset will be effectively legitimized by the main market regulatory authority in the United States.

We will therefore leave the Wild West to embrace a context characterized by transparency and regulatory clarity.

With its approval on the horizon, a substantial increase in market volumes is expected on the main cryptographic trading platforms.