US states advance bills banning crypto ATMs

TLDR

Several US states are moving from regulating to outright banning crypto ATMs, mainly to combat scams and high fee predatory kiosks.

1. Delaware and New Jersey have advanced bills that would fully ban owning or operating crypto ATMs, following earlier statewide bans in Indiana, Tennessee, and Minnesota.
2. Lawmakers point to FBI data showing roughly 13,500 crypto kiosk complaints and more than $388 million in losses in 2025, heavily impacting older users.
3. If more bans pass, cash based access to Bitcoin and other coins could shrink, pushing users toward regulated exchanges or informal peer to peer channels instead.

Deep Dive

1. Where Bans Are Actually Moving

Delawares House Economic Committee has advanced House Bill 441, which would prohibit owning, installing, or operating crypto kiosks statewide and require all machines to be removed within 90 days of enactment. Violations could draw penalties up to $10,000 and forced fee refunds to users or a consumer protection fund if users cannot be found. New Jerseys Senate Commerce Committee has similarly moved Senate Bill 2141 to the full Senate, banning businesses from owning, controlling, installing, managing, selling, or offering crypto ATMs with penalties up to $20,000 for repeat offenses.Delaware and New Jersey details show both are targeting the machines directly.

These efforts line up with states that already have full bans. Indiana, Tennessee, and Minnesota have enacted laws that effectively outlaw crypto kiosks, and at least 20 to 30 states have imposed some mix of limits, licensing, or disclosure rules on crypto ATMs since 2023.A broader crackdown summary notes 13 new kiosk laws in 2026 alone.

2. Why States Are Targeting Crypto ATMs

Lawmakers frame these machines as scam rails more than on ramps. FBI data cited in multiple bills reports about 13,460 crypto kiosk complaints and over $388.9 million in losses in 2025, a 23 percent rise in complaints and 58 percent rise in losses over 2024, with people over 50 accounting for more than half of complaints and over $300 million in losses.A detailed overview links most complaints to impersonation and urgent payment scams.

Sponsors also highlight fee levels. Delawares lead sponsor Cyndie Romer argues kiosks reduce digital currency to a predatory cash grab, with fees up to 20 percent versus roughly 0.4 to 1 percent on online exchanges.Her remarks and bill terms emphasize consumer protection rather than anti crypto ideology.

3. Impact On Users And What To Watch

For most crypto traders who already use centralized or decentralized exchanges, these bans may change little, as kiosk volume is a tiny share of total crypto activity. The main impact falls on cash heavy users or the unbanked who rely on in store machines to move between cash and Bitcoin or stablecoins.One analysis notes that eliminating kiosks can push those users toward peer to peer deals or lightly regulated services, which carry their own risks.

Operators are already feeling pressure. Bitcoin Depot, once running over 9,000 kiosks, cited regulation as a key factor in its recent bankruptcy. If more states follow Delaware and New Jersey, the stand alone crypto ATM business model could shrink sharply or pivot toward stricter identity checks and limits.

Conclusion

State level bans on crypto ATMs are becoming a clear trend driven by fraud statistics and very high fees rather than a direct attack on crypto ownership itself. The practical effect is a gradual shift away from anonymous cash to crypto kiosks and toward more regulated channels, with some risk that vulnerable users migrate to even less safe options if alternatives are not clearly provided. Watching whether Delaware, New Jersey, and other states enact full bans will show how quickly this on ramp closes and how the industry adapts.