Is the US Government Planning a Crypto ATM Bill?

Crypto ATMs, once seen as a convenient way for the public to access digital assets, have increasingly become a target for fraudsters. A new discussion in Washington suggests that these machines may soon face stricter oversight. 

Wyoming Senator Cynthia Lummis has hinted that the Senate’s version of the market structure bill could include measures to curb crypto ATM scams, especially those impacting elderly Americans.

The timing is significant. Congress is currently debating how to shape comprehensive digital asset rules, with the House already passing its CLARITY Act in July. 

The Senate Banking Committee is now preparing its own draft, and crypto ATMs could become a part of the regulatory conversation.

Read Also: New KYC Rules Shake Up Wisconsin's Bitcoin ATM Industry

Key Takeaways

• Senator Cynthia Lummis said the Senate’s market structure bill may address crypto ATM scams.
• The Cheyenne police department recently reported 50 cases of ATM fraud targeting seniors, with losses over $645,000.
• The FBI logged more than 11,000 complaints tied to crypto kiosks in 2024, totaling $246 million in losses.

Why Crypto ATMs Are Under Scrutiny

Crypto ATMs allow users to buy or sell cryptocurrencies like Bitcoin in physical locations, often in convenience stores or shopping centers. Their appeal lies in accessibility, but this very feature has also made them a popular tool for scams.

Fraudsters have tricked vulnerable individuals, particularly seniors, into sending money through these machines under false pretenses.

According to Senator Lummis, local reports in Wyoming showed nearly 50 cases of fraud tied to ATMs, amounting to hundreds of thousands in losses. Nationally, the FBI reported over $246 million in fraud at kiosks in 2024 alone. These numbers are fueling calls for stronger consumer protections.

The Senate’s Market Structure Bill

The Senate Banking Committee is expected to vote on its digital asset market structure bill before the end of the month. While the latest draft did not explicitly mention ATMs, Lummis suggested that revisions could bring these machines under federal oversight.

The bill’s goal is to create clear rules for digital assets, exchanges, and custodians. By potentially adding provisions for ATMs, lawmakers aim to address scams while not stifling legitimate crypto use. Lummis emphasized the importance of bipartisan safeguards that punish bad actors without slowing innovation.

State and Local Responses to ATM Fraud

In the absence of federal law, many states and municipalities have acted on their own. For instance, Stillwater, Minnesota, and Spokane, Washington, banned crypto kiosks entirely. Grosse Pointe Farms, Michigan, introduced a $1,000 daily transaction cap even before any machines were installed.

As of August 2025, 13 states had passed legislation restricting ATM operations. Measures range from requiring warnings on kiosks, enforcing daily transaction limits, mandating refunds for fraud victims, and registering operators with state regulators.

These patchwork rules highlight the urgency of federal guidance. Without a unified standard, operators face inconsistent obligations across states, while consumers remain vulnerable.

Previous Attempts at Federal Oversight

This is not the first time lawmakers have tried to legislate crypto ATM protections. In February, Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act. 

It proposed requiring kiosk operators to display scam warnings and take reasonable steps to prevent fraud. The bill was referred to the Senate Banking Committee but stalled before reaching a vote.

The renewed momentum in the broader market structure debate, however, could give crypto ATM rules another chance at inclusion.

Final Thoughts

The push to regulate crypto ATMs reflects broader concerns about consumer safety in the digital asset space. While crypto markets expand and mature, the risk of scams through accessible entry points like kiosks remains a pressing issue. 

If the Senate’s market structure bill includes ATM provisions, it could mark the first nationwide step toward harmonized protections.

For now, investors, operators, and consumers should watch closely as the Senate Banking Committee moves toward a vote. A final version of the bill, expected later this year, will determine whether crypto ATMs face new federal oversight by 2026.

Read Also: Number of Bitcoin ATMs in Australia Increases by 29%

FAQs

Why are US lawmakers focusing on crypto ATMs?

Crypto ATMs have become a common tool for fraudsters, especially targeting seniors. The FBI reported $246 million in fraud losses from crypto kiosks in 2024.

What is the Senate’s market structure bill?

It is a proposed law aimed at creating clear rules for digital asset companies and markets. Senator Lummis has suggested it may include measures against crypto ATM scams.

How have states responded to crypto ATM fraud?

Some states and cities have imposed bans, daily limits, or mandatory warnings on kiosks. Thirteen states already have restrictions in place.

Has the federal government regulated crypto ATMs before?

No. While Illinois Senator Dick Durbin proposed a bill in 2024, it did not pass. Current efforts in the Senate may revive the idea.

When could new crypto ATM rules take effect?

If included in the Senate bill and passed into law, new rules could be implemented by 2026, depending on the final legislative timeline.