Nebraska State of the USA Introduced Strict Regulations to Prevent Crypto Fraud! Here are the Details

Nebraska Governor Jim Pillen officially signed LB609, also known as the Controllable Electronic Record Fraud Prevention Act, to combat fraud and protect consumers by imposing stricter regulations on cryptocurrency ATMs and kiosks.

Nebraska Enacted Crypto ATM Law to Combat Fraud

Legislation introduced by Senator Eliot Bostar in January requires crypto ATM operators to obtain a license under the Nebraska Money Transmitters Act and to clearly disclose all terms and potential fraud risks to users.

Governor Pillen, who said, 'Cryptocurrency is a developing sector and we are working hard to make Nebraska a crypto leader,' said in a letter dated X: 'We want everyone to know that we are open for business and doing it right.'

Nebraska Banking Department Director Kelly Lammers emphasized the state's commitment to crypto innovation while ensuring consumer protection.

Lammers said, "We will soon have a team that will closely monitor those who target our citizens, Nebraskans, and their financial resources by using Crypto ATMs."

Crypto ATMs have faced increased regulatory scrutiny due to their associations with fraud. In September 2024, the Federal Trade Commission (FTC) reported a “big increase” in fraud related to Bitcoin ATMs, with consumer losses exceeding $65 million in the first half of the year.

Last month, Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act aimed at introducing federal regulations to prevent fraudulent activities.

With LB609 currently in effect, Nebraska joins a growing list of states tightening supervision over financial services related to crypto.