Nebraska has officially become the latest U.S. state to introduce regulatory oversight for cryptocurrency ATMs, following the passage of the Controllable Electronic Record Fraud Prevention Act. Governor Jim Pillen signed the bill into law on March 11, 2025, signaling the state’s commitment to fostering a safe and regulated environment for digital asset transactions.
The legislation, also known as Bill LB609, is designed to increase transparency in Bitcoin ATM operations and prevent fraudulent activity. While the bill itself does not explicitly focus on cryptocurrency terminology, Nebraska’s governor’s office emphasized its importance in shaping the state’s crypto-friendly policies.
“Cryptocurrency is an important, emerging industry—and we’ve been working hard to build Nebraska into a cryptocurrency leader,” Governor Pillen stated.
“An important part of these efforts is to make sure that we have guardrails to prevent criminals from taking advantage of Nebraskans.”
With this law, Nebraska aims to strike a balance between supporting the growth of the digital asset sector and implementing necessary safeguards to protect consumers from crypto-related fraud.
Key Provisions of the New Law
As part of the Fraud Prevention Act, Nebraska is enforcing stricter disclosure and refund policies for cryptocurrency ATMs to safeguard users from fraud and exploitation. Under the new regulations, Bitcoin ATM operators must clearly disclose all transaction terms, including detailed warnings about consumer fraud risks, ensuring that users fully understand the potential dangers of scams and deceptive practices.
The law also establishes a refund framework for fraud victims, giving consumers 90 days to report fraudulent activity to both the operator and law enforcement. If the fraud is verified, the ATM operator is required to issue a full refund, setting a new precedent for consumer protection in the crypto industry.
Nebraska officials have positioned the state as both pro-crypto innovation and strong on enforcement against financial crime. Kelly Lammers, Director of the Nebraska Department of Banking, reinforced this stance, stating:
“Nebraska is open for business in the cryptocurrency space. Those doing legal business in the state are absolutely welcome.”
Legislative Support and Consumer Protection
The bill, introduced by State Senator Eliot Bostar, received overwhelming support in the 49-member unicameral legislature, passing with 48 votes in favor and one legislator excused from voting. This legislative action addresses the increasing number of cryptocurrency-related scams in Nebraska. In 2023, residents reported 239 scams involving cryptocurrency, resulting in losses totaling approximately $14.6 million. The actual figures are likely higher, as many incidents go unreported due to victims’ reluctance.
Nebraska’s proactive approach mirrors a broader national trend toward regulating cryptocurrency kiosks to protect consumers. States like Florida and California have proposed similar regulations, including transaction limits and mandatory licensing for operators.
Aligning with National Trends in Crypto Regulation
As Bitcoin ATMs and cryptocurrency kiosks grow in popularity, fraudulent activity surrounding these machines has surged, prompting increased regulatory attention across the United States. According to data provided to NBC News by the Federal Trade Commission (FTC), consumers lost over $110 million in scams related to crypto ATMs in 2023 alone.
Despite the growing focus on cryptocurrency regulation, Nebraska has not introduced any proposals to establish a state-backed Bitcoin reserve, unlike other jurisdictions. Meanwhile, at the federal level, President Trump recently signed an executive order launching a national strategic Bitcoin reserve and a separate digital asset stockpile, signaling a shift in federal policy toward integrating digital assets into the national financial strategy.
Quick Facts:
- Nebraska has enacted the Controllable Electronic Record Fraud Prevention Act, introducing regulatory oversight for cryptocurrency ATMs.
- Governor Jim Pillen signed Bill LB609 into law on March 11, 2025, reinforcing the state’s commitment to crypto-friendly policies while preventing fraud.
- The law enhances transparency in Bitcoin ATM operations, ensuring clear disclosure of transaction terms and anti-fraud safeguards.
- Nebraska aims to balance crypto industry growth with consumer protection, setting a precedent for other states considering crypto regulations.
