Nebraska Governor Jim Pillen has signed a new law aimed at curbing cryptocurrency fraud, particularly at crypto ATMs, as crime linked to these machines surges across the United States.
“Cryptocurrency is an important, emerging industry, and we’ve been working hard to build Nebraska into a cryptocurrency leader,” Governor Pillen stated on March 12 after signing the legislation. “An important part of these efforts is to make sure that we have guardrails to prevent criminals from taking advantage of Nebraskans.”
Crypto ATM Fraud on the Rise
The new legislation, known as the Controllable Electronic Record Fraud Prevention Act, comes in response to rising fraud at crypto kiosks and ATMs. According to the Federal Trade Commission, victims lost over $65 million to crypto ATM scams in the first half of 2024 alone. The agency previously reported a nearly tenfold increase in fraud losses at Bitcoin ATMs from 2020 to 2023.
Stricter Regulations for Crypto ATM Operators
Introduced by Senator Eliot Bostar on January 22, the bill (LB 609) mandates that all crypto ATM and kiosk operators must:
- Be licensed under Nebraska’s Money Transmitters Act
- Register with and receive approval from the Department of Banking and Finance
- Submit quarterly reports detailing kiosk locations, operator names, and transaction data
The legislation also imposes strict transaction limits:
- $2,000 per day for new users
- $5,000 per day for existing customers
- Transaction fees capped at 18% of the transaction value
Additionally, new customers who report fraud within 90 days are eligible for a full refund, including fees. Existing customers can recover fees lost to fraudulent transactions.
Compliance Measures and Industry Impact
Crypto ATM operators are now required to display fraud warnings and appoint a compliance officer to enforce security measures.
This move follows a similar crackdown in Illinois, where over 1,200 crypto ATMs were shut down after Senator Dick Durbin introduced new regulations.
“Nebraska is open for business in the cryptocurrency space,” said Kelly Lammers, director of Nebraska’s Department of Banking. “Those that target our citizens … using crypto ATMs as part of their transfer method, we will soon have a team that will be watching even more closely.”
Nebraska’s Crypto Stance
While Nebraska is taking steps to regulate crypto ATMs, the state has yet to join the 21 U.S. states that have proposed legislation to create strategic crypto reserves, according to the Bitcoin Reserve Monitor.
As crypto adoption grows, Nebraska’s move signals a balanced approach—supporting innovation while tightening safeguards against fraud.
