Delaware and New Jersey lawmakers have escalated their crackdown on cryptocurrency ATMs, advancing legislation that would prohibit the machines statewide. The moves come as the Federal Bureau of Investigation (FBI) reports surging fraud complaints tied to the kiosks, with over 13,460 incidents and more than $388.9 million in losses nationwide in 2025. More than half of the complaints involved victims aged over 50.
In Delaware, the House Economic Committee approved House Bill 441 on June 9, which would ban the ownership, installation, and operation of any cryptocurrency kiosk. The bill also targets retail point-of-sale or cashier-assisted crypto sales that mimic ATM functions. Representative Cyndie Romer, the bill’s sponsor, described the machines as a “predatory cash grab” that expose residents to financial harm. Under the proposal, existing ATMs would need to be physically removed within 90 days of the law taking effect. Violations would be treated as unlawful trade practices, with penalties up to $10,000 and mandatory refunds of illegal fees to users or the state’s Consumer Protection Fund.
New Jersey’s Senate Commerce Committee advanced Senate Bill 2141 on June 8 with no opposition. That measure would make it illegal for any business to own, control, install, manage, sell, or offer cryptocurrency ATMs. The bill defines such kiosks as internet-connected devices allowing users to buy, sell, send, or receive digital assets via cash, debit, or credit cards. Lawmakers cited scams involving fake government officials, tech support schemes, and bank impersonation as key motivators. A first offense could incur a $10,000 penalty, with subsequent violations rising to $20,000, plus additional consumer fraud remedies. The ban would take effect on the first day of the sixth month after enactment.
The two states join a growing list: Indiana signed the first total statewide ban in March, followed by Tennessee in April and Minnesota in May. Canada is also considering nationwide restrictions. Meanwhile, operator Bitcoin Depot filed for Chapter 11 bankruptcy amid the mounting regulatory pressure, falling revenue, and security issues.
Industry representatives argue that operators should not be held liable for crimes conducted by third-party scammers and note that many have added on-screen warnings, identity checks, and transaction limits. However, the legislative trend reflects a decisive shift toward outright removal rather than regulation, making crypto ATM bans a prominent consumer protection response in 2026.
