U.S. Senator Cynthia Lummis (R-WY) is advocating for stronger safeguards against cryptocurrency ATM fraud as part of the Senate's upcoming market structure bill, which she co-sponsors with Senator Kirsten Gillibrand (D-NY). In a recent social media post, Lummis emphasized the need to address this issue, citing a 31% rise in victim losses linked to crypto kiosks, with seniors disproportionately affected.
The bill, expected to be voted on by the Senate Banking Committee by the end of September 2025, aims to introduce federal regulations to combat fraud, such as requiring clearer warnings and transaction limits. According to FBI and FinCEN reports, over 11,000 fraud cases involving crypto ATMs were reported in 2024, resulting in losses nearing $247 million. A local example from Cheyenne, Wyoming, highlighted 50 instances totaling more than $645,000.
Lummis noted that she and Gillibrand first proposed similar legislation in 2023, aiming for smart regulations that prevent scams without stifling innovation. Industry leaders, like Paul Tarantino of Byte Federal, support collaborative efforts but caution against overreach. Currently, 13 U.S. states have enacted local laws, including bans or limits, but federal action is seen as crucial for consistency. The goal is to have the bill signed into law by 2026.