Nebraska Bill LB609 Signed into Law

Nebraska bill LB609, aimed at protecting users of Bitcoin ATMs and electronic kiosks, was signed into law on Wednesday by Governor Jim Pillen.

Controllable Electronic Record Fraud Prevention Act

The Controllable Electronic Record Fraud Prevention Act implements regulations to alert individuals about potential fraudulent behaviors and prevent harm. Although the bill itself does not heavily focus on crypto terminology, the governor’s office stated that it’s a key part of Nebraska’s adoption of cryptocurrency.

Governor Pillen stated, “Cryptocurrency is an important, emerging industry—and we’ve been working hard to establish Nebraska as a leader in this space. An important aspect of these efforts is ensuring guardrails are in place to prevent criminals from exploiting Nebraskans.”

Key Regulations

The Fraud Prevention Act mandates that electronic kiosk operators must clearly disclose all terms to users, including distinct warnings about consumer fraud signs. Additionally, it establishes guidelines for managing fraudulently induced behavior:
– Customers reporting fraud within 90 days to the operator and law enforcement are eligible for a full refund.

Nebraska Department of Banking Director Kelly Lammers stated, “Nebraska is open for business in the cryptocurrency space. Those engaging in legal business here are absolutely welcome.”

She also added, “However, those targeting our citizens and attempting to exploit Nebraskans will face increased scrutiny.”

Increasing Fraudulent Activity

Fraud at Bitcoin ATMs and cryptocurrency kiosks has surged as their popularity grows. The Federal Trade Commission (FTC) reported that consumers lost over $110 million in scams related to these machines in 2023.

In late February, Illinois Senator Dick Durbin introduced a similar bill imposing regulations on Bitcoin ATMs in Illinois. Coin ATM Radar reports nearly 30,000 Bitcoin and cryptocurrency ATMs currently operating across the United States.

Unlike many states, Nebraska is not pursuing legislation for a Bitcoin and/or cryptocurrency reserve. Recently, President Trump signed an executive order to initiate a national strategic Bitcoin reserve and separate digital asset stockpile.

Edited by Andrew Hayward