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Banking omnibus bill would add cyber‑closure authority, expand digital‑asset rules and tighten refinance disclosures
Summary
LB717, the Department of Banking and Finance’s annual omnibus bill, would let regulators temporarily close institutions during a cybersecurity event, harmonize digital‑asset charters with federal law (including credit unions), allow digital asset depositories broader deposit placement and require net tangible‑benefit disclosures for many refinances.
Senator Mike Jacobson introduced LB717 as the Department of Banking and Finance’s annual omnibus measure to update state banking and financial statutes and to align Nebraska law with recent federal changes.
Director Kelly Lammers of the Department of Banking and Finance told the committee the bill would, among other changes, amend the Banking Act to recognize a cybersecurity event as an emergency occurrence for which a financial institution may temporarily close; "this legislation enables the ability to have a local decision at the front door," Lammers said. The bill would also update the Nebraska Financial Innovation Act (NFIA) to include credit unions in the definition of "financial institution," allow digital asset depositories to place customer funds in any FDIC‑insured bank rather than only Nebraska banks, and clarify capital and supervisory standards to harmonize with the federal "Genius Act."
LB717 would require licensees in the installment loan and residential mortgage spaces to provide a net tangible benefit analysis to borrowers seeking a refinance, intended to prevent repetitive refinancing that yields little borrower benefit while generating fees. The bill also raises certain principal limits in usury exemptions from $25,000 to $100,000 to reflect modern lending realities.
Industry witnesses largely supported the bill. Patrick Gearhart of Telecoin Digital Asset Bank said the NFIA changes would help Nebraska remain a national leader in financial modernization; Ryan McIntosh of the Nebraska Bankers Association and L. James Wright of the Nebraska Credit Union League also voiced support, while the Nebraska Bitcoin Association proposed a narrow neutral amendment to explicitly protect individual self‑custody of private keys.
Director Lammers said the department had already facilitated refunds to Nebraskans tied to crypto ATMs and defended consumer protections in the bill. Lawmakers posed technical questions about how inclusion of credit unions and the Genius Act alignment will be implemented; Lammers said the department is engaged but noted some details on the "substantially similar" standard are not yet in writing.
What’s next: The hearing included several proponents and a proposed neutral amendment; no committee vote was recorded during the public session.
