- Nebraska leads in stablecoin regulation with the Nebraska Financial Innovation Act
- Bitcoin ATMs see a rise in fraud, with Illinois proposing new regulations
- President Trump signs an executive order for a national Bitcoin reserve
Nebraska is digging in its heels in regulating digital assets, especially stablecoins. State lawmakers made it clear during a recent hearing: they want to keep stablecoin regulation firmly in state hands.
This stance builds on Nebraska’s efforts, including the Nebraska Financial Innovation Act. This legislation made Nebraska the second state to set up rules for digital asset custody institutions, allowing them to issue stablecoins.
Rep. Flood, who championed the Nebraska Financial Innovation Act, told the hearing that any federal stablecoin legislation must respect Nebraska’s existing regulatory framework. The goal? To allow the state to continue its leadership while meeting federal guidelines.
Flood praised Nebraska’s unique regulatory approach, which has already cleared the way for state-chartered banks to issue stablecoins. The concern raised was how federal laws might impact this state-level regulation, particularly how the federal rules could clash with the state’s existing system.
The legislation under consideration provides for a dual regulatory system: states can either adopt federal standards or implement their own regulatory mechanisms that meet or exceed federal requirements.
Related: Stablecoin Regulation Draft: House Leaders Chart US Digital Future
Bitcoin ATM Fraud: A National Headache
While Nebraska focuses on stablecoins, a different crypto problem is brewing nationwide: Bitcoin ATM fraud. Recent data shows a spike in fraudulent activities linked to these machines, especially in Illinois, where Senator Dick Durbin is pushing for legislation to regulate Bitcoin ATMs.
Across the United States, approximately 30,000 Bitcoin ATMs are in operation. These machines have become popular among cryptocurrency users but have also been increasingly linked to criminal activity.
While states like Illinois are taking steps to address these concerns, Nebraska has yet to propose any legislation regulating Bitcoin ATMs. Unlike some other states, Nebraska is also not considering establishing a cryptocurrency reserve.
Related: Bitcoin ATMs Popping Up in Costco Stores Nationwide
In contrast, President Trump recently signed an executive order to create a national Bitcoin reserve and a separate digital asset stockpile. This executive order reflects the growing federal interest in regulating digital assets and ensuring security.
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