Delaware, New Jersey advance crypto ATM bans amid fraud surge
In brief
- Delaware House Economic Committee passed HB 441 banning crypto ATMs with 90-day removal deadline and $10,000 penalties
- New Jersey Senate Commerce Committee unanimously advanced ban with penalties up to $20,000 for repeat offenses
- FBI reported 13,500 crypto ATM complaints in 2025, totaling $388 million in losses
- Indiana, Tennessee, Minnesota enacted total bans; Arizona, California capped transaction values
Rising fraud complaints drive legislative action
The timing reflects a surge in crypto ATM fraud. The FBI received nearly 13,500 complaints about crypto ATMs in 2025 involving over $388 million in losses, representing a 23% increase in complaints and a 58% increase in losses from 2024.
Older Americans are being hit hardest. Over half of crypto ATM complaints involved people aged over 50, with losses exceeding $302 million. The machines' predatory fee structure fuels much of the damage — crypto ATM fees can be upwards of 20% of the transaction value, versus 0.4% to 1% in fees for online exchanges.
What the bills would do
Delaware's bill takes a broad approach. It would ban fiat-to-crypto sales that replicate or substitute crypto ATMs, such as through point-of-sale systems or cashiers, not just physical kiosks. It also mandates that any crypto ATMs must be removed within 90 days after the bill is signed into law. The bill outlines penalties of up to $10,000 for violations.
New Jersey's bill follows a similar path. It would ban owning, controlling, installing, managing, selling, or offering to sell a crypto ATM. The enforcement teeth are steeper: penalties of up to $10,000 for a first offense, doubling to $20,000 for subsequent offenses.
A broader trend
These bills join a growing wave of state action. Indiana became the first US state to ban crypto ATMs with a law signed in March. Tennessee followed with its ban in April, and Minnesota passed a ban in May. Some US cities have also passed or are weighing ordinances banning crypto ATMs, and some states, including Arizona and California, have capped the value of transactions allowed by crypto ATMs.
The industry is already feeling the pressure. Bitcoin Depot, once the largest operator of crypto ATMs in the world with over 9,000 kiosks, cited regulatory pressure in its recent bankruptcy filing.
