Nebraska Enforces New Crypto ATM Regulations to Protect Consumers
On March 11, 2025, Nebraska Governor Jim Pillen signed LB609, the Controllable Electronic Record Fraud Prevention Act, into law, marking a significant regulatory move to protect consumers from cryptocurrency ATM fraud. This legislation, passed with overwhelming support (48 votes in favor, none against, and one abstaining) by Nebraska’s 49-member unicameral legislature on March 6, 2025, establishes specific regulations for crypto ATMs, aiming to safeguard users and position Nebraska as a leader in the cryptocurrency industry.
The law’s timing aligns with growing concerns over crypto scams, particularly those targeting vulnerable populations like the elderly, with reported losses of $14.6 million in 2023 according to the American Association of Retired Persons (AARP) [Nebr aska Enforces New Crypto ATM Rules to Protect Consumers – Regulation Bitcoin News](https://news.bitcoin.com/nebr aska-enforces-new-crypto-atm-rules-to-protect-consumers).
Details of the Law
The Controllable Electronic Record Fraud Prevention Act introduces several key requirements for crypto ATM operators:
- Licensing: Operators must obtain a money transmitter license, ensuring compliance with security and financial standards.
- Fee Transparency: Operators are required to clearly disclose all transaction fees and post prominent warnings about potential scams and risks associated with cryptocurrency.
- Daily Transaction Limits: New customers are limited to $2,000 per day, while established customers can transact up to $10,500 per day, aiming to prevent significant financial losses in a single transaction due to fraud.
- Refund Policy: A critical feature is the mandate for operators to have a refund policy, allowing customers to receive refunds if they report fraud within 30 days of the transaction, providing a safety net for scam victims.
- Compliance and Anti-Fraud Measures: Operators must employ a full-time compliance officer, implement anti-fraud policies supported by blockchain analytics software, provide live customer service on weekdays from 7:00 a.m. to 9:00 p.m., and maintain a dedicated communication method with law enforcement.
These regulations are designed to enhance consumer protection and operational integrity, addressing the rising tide of crypto-related fraud, with Nebraska AARP reporting 239 digital currency scam complaints in 2023 [Nebr aska passes act on crypto ATMs to protect consumers | Cryptopolitan](https://www.cryptopolitan.com/nebr aska-act-crypto-atms-protect-consumers/).
The need for such regulations is underscored by the increasing prevalence of crypto ATM scams, often facilitated through these kiosks located in high-traffic areas like gas stations and convenience stores.
The Federal Trade Commission (FTC) has highlighted a massive increase in losses, with over $110 million reported in 2023, and scams disproportionately affecting older adults New FTC Data Shows Massive Increase in Losses to Bitcoin ATM Scams | Federal Trade Commission. Nebraska’s law is part of a broader trend, with states like Minnesota implementing similar consumer protection measures since August 1, 2024, requiring crypto kiosk operators to disclose terms and conditions and offer refunds for fraud reported within 14 days New Minnesota crypto law goes into effect to protect consumers against fraud.
Governor Pillen emphasized Nebraska’s dual commitment, stating, “We’ve been working hard to build Nebraska into a cryptocurrency leader.
An important part of these efforts is to make sure that we have guardrails to prevent criminals from taking advantage of Nebraskans” [Nebr aska ‘Open for Business’ to Crypto With New Bitcoin ATM Law – Decrypt](https://decrypt.co/309700/nebr aska-enatcs-bitcoin-crypto-atm-law). This reflects a strategic balance between fostering innovation in the crypto sector and ensuring consumer safety, potentially setting a precedent for other states and influencing federal policy.
Consumer and Industry Implications
For consumers, these regulations offer significant protections, particularly the refund policy, which is a unique feature compared to some other states’ laws. The daily transaction limits and fee transparency requirements aim to reduce the risk of large-scale financial losses, especially for new users who may be more vulnerable to scams. For the crypto industry, Nebraska’s approach could attract legitimate operators by providing a clear regulatory framework, while deterring fraudulent activities.
Nebraska Department of Banking Director Kelly Lammers noted, “Nebraska is open for business in the cryptocurrency space,” highlighting the state’s welcoming stance [Gov. Pillen Signs Bill Creating Protections from Cryptocurrency Fraud | Office of Governor Jim Pillen](https://governor.nebr aska.gov/gov-pillen-signs-bill-creating-protections-cryptocurrency-fraud).
Comparison with Other States
While Nebraska is not the first state to regulate crypto ATMs, its law is among the most recent and comprehensive. Minnesota’s law, effective since August 2024, also focuses on consumer protection but differs in specifics, such as a 14-day fraud reporting period for refunds compared to Nebraska’s 30 days.
Other states, like Vermont, have implemented registration requirements and daily transaction limits of $1,000, but the regulatory landscape varies widely, with some states like South Carolina exempting crypto ATMs from licensing under certain conditions AARP Pushes States to Crack Down on Crypto ATMs. This diversity underscores the complexity of state-level crypto regulations, with Nebraska’s law adding to the evolving framework.
Table: Key Provisions of Nebraska’s Crypto ATM Regulations
| Provision | Details |
|---|---|
| Licensing | Operators must have a money transmitter license |
| Fee Transparency | Clear disclosure of all transaction fees |
| Daily Transaction Limits | $2,000 for new customers, $10,500 for established |
| Refund Policy | Refunds for fraud reported within 30 days |
| Compliance Measures | Full-time compliance officer, anti-fraud policies, live customer service, law enforcement communication |
Key Citations
- [Nebr aska Enforces New Crypto ATM Rules to Protect Consumers – Regulation Bitcoin News](https://news.bitcoin.com/nebr aska-enforces-new-crypto-atm-rules-to-protect-consumers)
- [Nebr aska passes act on crypto ATMs to protect consumers | Cryptopolitan](https://www.cryptopolitan.com/nebr aska-act-crypto-atms-protect-consumers/)
- [Nebr aska ‘Open for Business’ to Crypto With New Bitcoin ATM Law – Decrypt](https://decrypt.co/309700/nebr aska-enatcs-bitcoin-crypto-atm-law)
- [Gov. Pillen Signs Bill Creating Protections from Cryptocurrency Fraud | Office of Governor Jim Pillen](https://governor.nebr aska.gov/gov-pillen-signs-bill-creating-protections-cryptocurrency-fraud)
- New FTC Data Shows Massive Increase in Losses to Bitcoin ATM Scams | Federal Trade Commission
- New Minnesota crypto law goes into effect to protect consumers against fraud
- AARP Pushes States to Crack Down on Crypto ATMs
