Nebraska Governor Jim Pillen’s office announced on March 12 that the governor has signed Legislative Bill 609 (LB609) into law, introducing the Controllable Electronic Record Fraud Prevention Act to bolster consumer protection against cryptocurrency fraud. This bipartisan legislation, supported by law enforcement, aims to safeguard users of cryptocurrency kiosks and ATMs.

Governor Pillen emphasized Nebraska’s commitment to fostering a strong crypto industry while ensuring consumer protection, stating:

Cryptocurrency is an important, emerging industry — and 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. We look forward to continuing to lay the groundwork for a safe and robust crypto industry in our state. This is good news for consumers,” he added.

LB609 mandates that operators of cryptocurrency kiosks obtain licenses under the Nebraska Money Transmitters Act and submit quarterly reports to the Nebraska Department of Banking and Finance. The act also requires operators to provide clear disclosures regarding risks, fees, and exchange rates; implement anti-fraud measures; establish refund policies for fraudulent transactions; display consumer warnings; and enforce transaction limits. Additionally, the legislation includes provisions for the forfeiture of controllable electronic records in criminal investigations.

Kelly Lammers, director of the Nebraska Department of Banking, reinforced the state’s dedication to transparency and security within the crypto space, stating:

Nebraska is open for business in the cryptocurrency space. That also means we need to increase transparency to assure those doing legal business in the State of Nebraska that you are absolutely welcome.

The unanimous passage of LB609 reflects Nebraska’s proactive approach to addressing the evolving risks associated with cryptocurrency transactions, aiming to protect consumers and support the growth of a safe and robust crypto industry within the state.

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