The Controllable Electronic Record Fraud Prevention Act has been signed into law in Nebraska

The new law regulates cryptocurrency automatic teller machines (ATMs). It establishes conditions for operating crypto ATMs and provides consumer protections for ATM users.

The Controllable Electronic Record Fraud Prevention Act has been signed into law in Nebraska. The law regulates cryptocurrency automatic teller machines (ATMs). It establishes conditions for operating crypto ATMs and provides consumer protections for ATM users.

The bill (LB 1511) passed the state’s 49-member nonpartisan, unicameral legislature on March 6 with 48 votes in favor and one legislator excused from voting. Governor Jim Pillen signed the bill on March 11.

The act makes ATM operators liable for some fraud

According to the official document, crypto ATM operators will be required to hold a money transmitter license and make their fees known in advance. They will also have to post clear warnings about potential scams and other risks associated with cryptocurrency.

New customers will be limited to $2,000 a day in transactions, while established customers will be allowed $10,500 a day. Operators will also have to have a refund policy for customers who report fraud within 30 days. New customers are eligible for a full refund on funds lost to fraud, while existing customers would get fees returned.

Operators will be required to have a full-time compliance officer and an anti-fraud policy backed up by the use of blockchain analytics software. They will provide live customer service on weekdays from 7:00 a.m. to 9:00 p.m. and a “dedicated communication method” with law enforcement.

The governor spun the new law as support for the crypto industry. “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,” Pillen said in a statement announcing the bill’s signing.

According to the American Association of Retired Persons (AARP), Nebraskans reported 239 scams with cryptocurrency in 2023. They lost a cumulative $14.6 million in those scams. Real losses were probably much higher but unreported, the AARP added.

Nebraska has passed several acts affecting crypto

The bill was introduced by Eliot Bostar and went largely unopposed throughout the legislative session. It will go into effect three months after the legislature adjourns for Spring.

There is no other Bitcoin-related legislation currently being considered in the state, according to Bitcoinlaws.io. However, a bill introduced at the request of the governor that would impose a 2.5-cent per kWh excise tax on cryptocurrency mining operations consuming over 1,000 kWh annually and allow public power districts to require financial assurances from these operations, among other things, is currently in hearings.

Bostar also introduced the Adopt the Blockchain Basics Act, which would have regulated cryptocurrency mining, custody, and trading, in 2023. That bill was carried over into 2024, but its status since April has been “indefinitely postponed.”

As reported by Cryptopolitan, Nebraska hosts Telcoin Bank, an issuer of the eUSD stablecoin. Telcoin was chartered as the state’s first Digital Asset Depository Institution in February, after applying in December. Telcoin founder and CEO Paul Neuner said, “The Nebraska charter creates an actual bank charter and the first that is explicitly authorized to connect consumers to DeFi [decentralized finance].”

The concept of Digital Asset Depository Institution was introduced in the Nebraska Financial Innovation Act of 2021. That law established a regulatory framework for digital asset depositories and allowed existing state-chartered banks to operate digital asset divisions. It also brought state legislation in line with the Uniform Commercial Code.

This news follows reports that the U.S. state of Wyoming has become the first to introduce legislation that would create a regulatory framework for decentralized autonomous organizations (DAOs). The bill, which was introduced by State Representative Bill Pownall, passed the House Appropriations Committee with a vote of 7-0. It will now proceed to the House floor for debate.

The bill defines DAOs as "autonomous organizations created and governed by blockchain technology and smart contracts," and it exempts them from certain state laws that apply to traditional corporations. It also sets up a process for registering DAOs with the Secretary of State's office.

The bill is part of Wyoming's broader effort to become a leading hub for blockchain and cryptocurrency technology. The state has already passed several laws to regulate cryptocurrencies and other digital assets.

In other news, the number of crypto scams reported in the U.S. in 2023 rose to 239, with victims incurring losses of $14.6 million, according to the American Association of Retired Persons (AARP).

The report, titled "AARP's 2023 Fraud Tip Sheet: Protect Yourself from Common Scams," provides an overview of the most prevalent scams reported to AARP's free Phone Scams Awareness initiative in