Delaware, New Jersey advance bills banning crypto ATMs
Delaware and New Jersey moved bills to ban crypto ATMs, with lawmakers citing scam risks and rising losses tied to the kiosks.
Intelligence analysis by GPT-5.4 Mini
Both states advanced measures that would bar crypto ATM ownership and operation, reflecting a broader state-level crackdown on machines linked to scams. The bills now move to their full chambers.
Two states want to stop the little machines that let people buy crypto with cash. Lawmakers say scammers use them too much, while the machine companies say they already warn people and limit trades.
Analysis
What happened
Delaware and New Jersey each advanced bills that would effectively ban crypto ATMs in their states. In Delaware, the House Economic Committee passed House Bill 441 to the full chamber. In New Jersey, the Senate Commerce Committee unanimously voted to send its ban to the full chamber.
Why lawmakers are pushing this
The article says lawmakers are acting out of concern that the kiosks are heavily used in scams. Delaware sponsor Cyndie Romer said crypto ATMs "reduce digital currency to a predatory cash grab" and argued that regular traders generally avoid them because fees can be much higher than online exchanges. Delaware’s bill would also cover fiat-to-crypto sales that "replicate or substitute" crypto ATMs, including some point-of-sale or cashier setups.
The broader trend
At least three other states — Indiana, Tennessee and Minnesota — have already enacted total bans. The FBI said in May that it received nearly 13,500 complaints about crypto ATMs in 2025 involving more than $388 million in losses, with over half the complaints coming from people older than 50. The article says losses in those complaints exceeded $302 million.
What the bills would do
Delaware’s proposal would require kiosks to be removed within 90 days if signed into law and would impose penalties of up to $10,000. If an operating kiosk is found, it would have to refund its fees to users or send the money to a consumer protection fund if users cannot be found. New Jersey’s bill would ban owning, controlling, installing, managing, selling, or offering to sell a crypto ATM and sets penalties of up to $10,000 for a first offense and $20,000 for later ones.
Industry response
Operators have argued they should not be blamed for third-party fraud and say they have added warnings and transaction limits. The article also notes that Bitcoin Depot, once the world’s largest crypto ATM operator, cited regulatory pressure as a major reason it filed for bankruptcy last month.
Key points
- Delaware and New Jersey advanced bills that would ban crypto ATMs.
- Lawmakers cited scam risks and large reported losses tied to the kiosks.
- Delaware's bill would require kiosks to be removed within 90 days if signed.
- The FBI said 2025 complaints about crypto ATMs rose sharply from 2024.
- Indiana, Tennessee and Minnesota have already passed total bans.
If the bills become law, supporters say they could cut down on scam losses, especially for older users who appear in many of the complaints. The rules could also push more activity toward online exchanges, where fees are lower and transactions may be easier to monitor.
A total ban could make it harder for some people to buy crypto in person, especially those who rely on cash-based access. Operators also argue that warnings and limits already exist, so scams could simply shift elsewhere rather than disappear.
