Delaware and New Jersey Progress Bills to Ban Cryptocurrency ATMs Statewide

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On June 9, 2026, the Delaware House Economic Committee advanced House Bill 441, aiming to ban the installation, ownership, and operation of any cryptocurrency kiosk statewide if enacted, according to Crypto. The bill hands down penalties of up to $10,000 for first-time violations, with the amount doubling for repeat offenses—$20,000.

It also compels operators to refund fees to all users, or if users can’t be tracked down, transfer those funds to a consumer fund, as Cointelegraph, TradingView reports. New Jersey acted even faster, as its Senate Commerce Committee unanimously passed Senate Bill 2141 on June 8, making their proposed ban cover all forms of ownership, management, or sale of crypto ATMs.

Specifically, these measures are written to close every loophole by targeting not just the machines but anyone facilitating crypto ATM activity—including indirect retail or point-of-sale involvement. According to legal market data, operators found in violation could face broad prosecution under consumer protection laws, leading to much harsher consequences.

Delaware and New Jersey take aggressive legislative action

At least three other states—Indiana, Tennessee, and Minnesota—have fully prohibited crypto ATM networks since March 2026and Crypto News.

Bitcoin Depot—the world’s largest crypto ATM operator with more than 9,000 deployed ATMs—has directly attributed its bankruptcy filing to the mounting legal risks, Tradingview reports.

National momentum: states race to curtail crypto ATM fraud

FBI data reported by Crypto nearly 13,500 consumer complaints involving crypto kiosks were filed in 2025, leading to over $388 million in reported losses. That represents a 23% jump in complaints and a 58% leap in dollar losses compared to 2024. Over half the reported cases involved Americans aged over 50, who collectively reported $302 million in losses—meaning older adults remain some of the most targeted victims for scams exploiting the anonymity and irreversibility of crypto kiosk transactions.

Regulators describe fraudsters impersonating government officials or tech support, instructing victims to deposit cash into crypto ATMs—funds that can vanish in seconds. The statistics are stark: growth in losses is exponential, and market data shows the data made state lawmakers act quickly on bans like Delaware’s HB 441.

Mechanics and penalties of the new bans

Delaware’s House Bill 441 is engineered for immediate, sweeping effect. If enacted, every crypto kiosk statewide must cease operation and be physically removed within 90 days. Operators who break the ban get hit with $10,000 fines for a first offense and $20,000 for repeat violations.

Besides fines, any operator caught running a kiosk after the deadline would have to refund all user fees or send unclaimed amounts to a consumer protection fund.

The broader impact for crypto, operators, and investors

While total crypto volume routed through kiosks is a slim share of the crypto market, the demographic impact is hard to dismiss. The bans place unique pressure on operators—not just financially, but legally—since the legislative language leaves little room to maneuver. This marks a pivotal shift in the landscape of crypto regulations. Tradingview’s analysis indicates portfolios tied to crypto ATM companies or firms with significant kiosk exposure now require an urgent risk review as regulation tightens across the U.S. Investors are taking note.

Bitcoin Depot’s bankruptcy—directly attributed to regulatory headwinds—signals what’s at stake for other firms in this sector. Should half the remaining states introduce similar bans within the next year, market data shows the footprint of crypto kiosks could shrink sharply. Most mainstream users conduct business via centralized or decentralized exchanges, so these regulatory shifts disproportionately affect cash-based or underbanked Americans who’ve relied on kiosks for access.News, those users may end up turning to peer-to-peer trades, which arguably carries higher risks due to less oversight and far fewer remedies if fraud happens.

Consumer protection, industry pushback, and policy debate

Kiosk operators, civil liberties advocates, policy groups insist blanket bans could send users—especially the most vulnerable—straight to even riskier and less-regulated corners of the financial world. Many believe robust registration, stronger anti-fraud protocols, and better transparency could provide more meaningful consumer protection without cutting off vital cash on-ramps.

On the flip side, lawmakers backing bans counter that years of attempted reforms haven’t worked. Supporters cite the extraordinary degree of circumvention by some operators. The FBI’s 2025 fraud figures left many policymakers feeling they simply had no other option. Debate will almost certainly intensify as more states mull over similar rules—even as federal regulators and Europe’s MiCA crypto regulation policy blueprint consider extending consumer protections much further.

What comes next for crypto ATM regulation?

If a national standard is modeled after bans like Delaware’s, the stakes could jump significantly. For now, though, skyrocketing losses and public outrage keep propelling new regulatory pushes. Analysts don’t see demand for tough policy dying down anytime soon.