Delaware and New Jersey Advance Bills to Ban Crypto ATMs

Lawmakers in Delaware and New Jersey have advanced legislation to completely ban cryptocurrency automated teller machines, joining a growing number of states responding to data showing the kiosks are heavily utilized in scams that disproportionately target older adults. The moves follow similar total bans enacted earlier this year in Indiana, Tennessee, and Minnesota, as regulatory pressure on the industry intensifies nationwide.

In Delaware, the House Economic Committee advanced House Bill 441 on June 9. The proposal would prohibit owning, installing, or operating a cryptocurrency kiosk statewide. If passed, existing machines would be required to cease operation and be physically removed within 90 days of the law taking effect. The bill's sponsor, Representative Cyndie Romer, argued that crypto ATMs enable fraud and carry exorbitant fees, sometimes upwards of 20% per transaction. She stated that the kiosks reduce digital currency to a predatory cash grab and that there is no reason to support a business structure that enables scammers to extort money from our most vulnerable populations. The bill would impose penalties of up to $10,000 for violations.