The Massachusetts Senate voted Thursday to prohibit crypto ATMs as part of an omnibus economic development bill, a move spurred by FBI data showing nearly $7 million in kiosk-scam losses statewide in 2025. The ban targets hundreds of unregulated machines in convenience stores, pharmacies, and liquor stores that, according to consumer advocates and law enforcement, have become a cash pipeline for fraudsters.
Norfolk County Sheriff Patrick McDermott detailed the typical scam: victims receive a call or text pressuring them to move savings into Bitcoin. Cash is inserted, a scammer-provided QR code scanned, and the deposit instantly routed to an anonymous wallet. Once gone, the funds are irrecoverable. The FBI recorded 296 complaints in Massachusetts last year, totaling $6,834,561 in losses—roughly $19,000 per day. Nationally, such kiosk scams siphoned $389 million over the past year.
AARP Massachusetts led the push for the crackdown. "A ban on crypto ATMs is now the most effective way to stop the ongoing damage," said state director Jen Benson. The state has no written rules for the machines, making it the only unregulated New England state. Vermont, Minnesota, Indiana, and Tennessee have outright bans, while 28 other states impose restrictions. The ban’s ultimate fate remains uncertain, as it must survive negotiations between the Senate and the House, where similar language failed twice previously.
