§ 8-3003 — Terms, defined

For purposes of the Nebraska Financial Innovation Act:
(1) Blockchain means a distributed digital record of controllable electronic record transactions;
(2) Centralized finance means centralized digital asset exchanges, businesses, or organizations with a valid physical address;
(3) Control has the following meaning:
(a) A person has control of a controllable electronic record if:
(i) The following conditions are met:
(A) The controllable electronic record or the system in which it is recorded, if any, gives the person:
(I) The power to derive substantially all the benefit from the controllable electronic record;
(II) Subject to subdivision (b) of this subdivision, the exclusive power to prevent others from deriving substantially all the benefit from the controllable electronic record; and
(III) Subject to subdivision (b) of this subdivision, the exclusive power to transfer control of the controllable electronic record to another person or cause another person to obtain control of a controllable electronic record that derives from the controllable electronic record; and
(B) The controllable electronic record, a record attached to or logically associated with the controllable electronic record, or the system in which the controllable electronic record is recorded, if any, enables the person to readily identify itself as having the powers specified in subdivision (a)(i) of this subdivision; or
(ii) Another person obtains control of the controllable electronic record on behalf of the person, or having previously obtained control of the controllable electronic record, acknowledges that it has control on behalf of the person.
(b) A power specified in subdivisions (3)(a)(i)(A)(II) or (III) of this section can be exclusive, even if:
(i) The controllable electronic record or the system in which it is recorded, if any, limits the use to which the controllable electronic record may be put or has protocols that are programmed to result in a transfer of control; and
(ii) The person has agreed to share the power with another person.
(c) For the purposes of subdivision (3)(a)(i)(B) of this section, a person may be identified in any way, including by name, identifying number, cryptographic key, office, or account number;
(4) Controllable electronic borrowing means the act of receiving digital assets or the use of digital assets from a lender in exchange for the payment to the lender of digital assets, interest, fees, or rewards;
(5) Controllable electronic record means an electronic record that can be subjected to control. The term has the same meaning as digital asset and does not include electronic chattel paper, electronic documents, investment property, and transferable records under the Uniform Electronic Transactions Act;
(6) Controllable electronic record exchange means a business that allows customers to purchase, sell, convert, send, receive, or trade digital assets for other digital assets;
(7) Controllable electronic record lending means the act of providing digital assets to a borrower in exchange for digital assets, interest, fees, or rewards;
(8) Controllable electronic records staking means the act of pledging a digital asset or token with an expectation of gaining digital assets, interest, fees, or other rewards on such act;
(9) Customer means a digital asset depositor or digital asset account holder;
(10) Decentralized finance means digital asset exchanges, businesses, or organizations operating independently on blockchains;
(11) Department means the Department of Banking and Finance;
(12) Digital asset depository means a financial institution that securely holds liquid assets when such assets are in the form of controllable electronic records, either as a corporation organized, chartered, and operated pursuant to the Nebraska Financial Innovation Act as a digital asset depository institution or a financial institution operating a digital asset depository business as a digital asset depository department under a charter granted by the director;
(13) Digital asset depository department means a financial institution operating a digital asset depository business as a digital asset depository department under a charter granted by the director;
(14) Digital asset depository institution means a corporation operating a digital asset depository business organized and chartered pursuant to the Nebraska Financial Innovation Act;
(15) Director means the Director of Banking and Finance;
(16) Financial institution means a bank, savings bank, building and loan association, or savings and loan association chartered by the United States, the department, or a foreign state agency; or a trust company;
(17) Fork means a change to the protocol of a blockchain network;
(18) Independent node verification network means a shared electronic database where copies of the same information are stored on multiple computers; and
(19) Stablecoin means a controllable electronic record designed to have a stable value that is backed by a reserve asset.

Legislative History

Source: Laws 2021, LB649, § 3; Laws 2023, LB92, § 20.