A Nebraska bill, LB609, which will help protect users of Bitcoin ATMs and other electronic kiosks, was signed into law Wednesday by Nebraska Governor Jim Pillen.
The Controllable Electronic Record Fraud Prevention Act implements regulations to warn individuals of potential fraudulent behavior, and prevent them from being harmed. While the text of the bill itself isn’t significantly focused on crypto terminology, the governor’s office put out a statement Thursday saying that it’s a key part of the state’s embrace of crypto.
“Cryptocurrency is an important, emerging industry—and we’ve been working hard to build Nebraska into a cryptocurrency leader,” said Governor Pillen in the statement. “An important part of these efforts is to make sure that we have guardrails to prevent criminals from taking advantage of Nebraskans.”
Part of the Fraud Prevention Act regulations will require electronic kiosk operators to clearly and boldly disclose all terms to users, including distinct warnings about the signs of consumer fraud.
Additionally, it creates clear guidelines for fraudulently induced behavior. For example, new or existing customers that report the fraudulent activity within 90 days to the operator and law enforcement are subject to receive a full refund from the operator.
“Nebraska is open for business in the cryptocurrency space,” said Nebraska Department of Banking Director Kelly Lammers in the statement. “Those doing legal business in the State of Nebraska, you are absolutely welcome.”
“Of course, those that target our citizens,” Lammers continued, “that look to exploit Nebraskans and their financial resources, using crypto ATMs as part of their transfer method, we will soon have a team that will be watching even more closely.”
Fraudulent activity at Bitcoin ATMs and cryptocurrency kiosks has been on the rise as the machines gain popularity. In data provided to NBC News, the Federal Trade Commission (FTC) indicated that consumers lost more than $110 million in scams related to the machines in 2023.
In late February, Illinois Senator Dick Durbin introduced a similar bill which would impose regulations on Bitcoin ATMs in his state. Data from Coin ATM Radar indicates that nearly 30,000 Bitcoin and cryptocurrency ATMs are operating in the United States at present time.
Unlike many states, Nebraska is not currently considering any legislation to establish a Bitcoin and/or cryptocurrency reserve. President Trump signed an executive order last week to launch a national strategic Bitcoin reserve and a separate digital asset stockpile.
Edited by Andrew Hayward