Nebraska Governor Jim Pillen has signed a law imposing stricter regulations on crypto ATMs to combat fraud and protect consumers.
The New Crypto ATM Law
The legislation introduced by Senator Eliot Bostar requires crypto ATM operators to obtain a license under the Nebraska Money Transmitters Act and clearly disclose all terms and potential fraud risks to users.
Support and Hopes from Officials
Nebraska Department of Banking Director Kelly Lammers emphasized the state’s commitment to crypto innovation while ensuring consumer protection.
Fraud Issues and Next Steps
Crypto ATMs have faced increased regulatory scrutiny due to their association with scams. In September 2024, the Federal Trade Commission reported a “major increase” in scams related to Bitcoin ATMs, with consumer losses exceeding $65 million in the first half of the year. Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act to introduce federal regulations.
With LB609 now in effect, Nebraska joins a growing list of states strengthening oversight over crypto-related financial services.
