Tennessee Governor Bill Lee signed House Bill 2505 on April 13, 2026, enacting a statewide ban on cryptocurrency ATMs and kiosks that will take effect on July 1, 2026. The legislation makes the installation, operation, or hosting of virtual currency kiosks a Class A misdemeanor, carrying penalties of up to 11 months and 29 days in jail and fines up to $2,500. Business owners and property hosts who allow these machines on their premises are also subject to enforcement.
The bill, which passed both chambers of the Tennessee legislature unanimously, was sponsored by House Speaker Cameron Sexton. It directly responds to fraud cases involving crypto kiosks, with state officials citing approximately $4 million in scam losses reported by Tennessee residents. The Federal Bureau of Investigation indicated that crypto ATM and kiosk-related complaints exceeded 13,000 in 2025, tied to more than $389 million in losses nationwide, with elderly Americans disproportionately affected.
According to CoinATMRadar, Tennessee had over 570 crypto kiosks operating before the ban, with major operators including Bitcoin Depot and CoinFlip. Bitcoin Depot shares fell nearly 6.9% on Nasdaq following the news. Tennessee becomes the second U.S. state to impose a full crypto ATM ban after Indiana, while other states such as Minnesota are considering similar legislation and a Massachusetts town enacted a local ban earlier in April.
Scammers commonly use crypto kiosks to direct victims—often impersonating police, government officials, or relatives in distress—to convert cash into cryptocurrency and send it to untraceable wallets. The upcoming ban shifts oversight from licensing-based regulation to criminal penalties. Operators and host businesses have until July 1 to remove machines or face legal consequences.
