In response to rising concerns over scams associated with cryptocurrency kiosks, lawmakers in Delaware and New Jersey have moved forward with legislation aimed at banning crypto ATMs. This initiative reflects a growing trend among US states, following similar actions taken by Indiana, Tennessee, and Minnesota.
The Delaware House Economic Committee has advanced House Bill 441, which prohibits the ownership, installation, or operation of cryptocurrency ATMs. This decision comes shortly after the New Jersey Senate Commerce Committee unanimously recommended its own bill to the full chamber. Both states aim to curb the usage of these machines, which have been linked to significant financial losses.
According to the FBI, there were nearly 13,500 complaints related to crypto ATMs in 2025, leading to losses exceeding $388 million, marking a 23% rise in complaints from the previous year. Over half of these complaints involved individuals aged over 50. Delaware's proposed legislation includes a 90-day removal period for existing ATMs and penalties reaching $10,000 for non-compliance.
Cyndie Romer, a Delaware bill sponsor, criticized crypto ATMs for their high transaction fees, which can exceed 20%, in contrast to much lower fees on online exchanges. She emphasized the risks posed to vulnerable populations by these machines.