AARP urged U.S. senators to keep Section 205 of the CLARITY Act intact before the Senate Banking Committee’s May 14 markup. The provision would require cryptocurrency kiosk operators to register with the Treasury Department as money transmitters, while preserving state authority to regulate the machines.
More than 13,460 complaints tied to crypto kiosks
In a May 13 letter to Chairman Tim Scott and Ranking Member Elizabeth Warren, AARP said crypto kiosks have become one of the fastest-growing fraud channels affecting older Americans. Citing FBI data, the group said that in 2025 more than 13,460 complaints involved cryptocurrency kiosks, with reported losses exceeding $389 million.
AARP described the machines as widely available in supermarkets, convenience stores, gas stations, bars, and restaurants across the country. According to the letter, scammers pose as government officials, tech support workers, or business representatives, then persuade victims to withdraw cash and feed it into a kiosk. The money is transferred into digital wallets controlled by criminals. Once the transaction is completed, recovery is nearly impossible.
Registration rule and state oversight are both central
The group’s position focuses on preserving both parts of Section 205: the federal registration requirement and the language that protects state regulatory power. AARP said it strongly supports the market structure provisions released ahead of the committee markup and asked lawmakers not to weaken the section as the bill moves forward.
AARP said older Americans cannot afford to see the provision diluted. Its request was narrow and direct: preserve the current Section 205 language as written, including the money transmitter registration mandate and the construction rule that protects state authority.
States have already moved on kiosk safeguards
AARP pointed to state enforcement as a major reason to keep the section in place. The group said 29 states have enacted protections related to cryptocurrency kiosks, including 12 states in 2026. Indiana, Tennessee, and Minnesota adopted full bans, while six other states and Washington, D.C., issued specific regulatory guidance covering the machines.
Blockchain Association also weighed in on X before the markup, saying Congress should protect consumers from scams while giving law enforcement stronger tools. The organization rejected claims that the CLARITY Act does not do enough to address fraud and described AARP as one of the country’s leading consumer advocacy groups actively supporting anti-scam provisions in the bill.
The letter added another outside endorsement for Section 205 before formal committee consideration on May 14. AARP’s message stayed tightly focused: keep the section unchanged, and do not weaken either the registration requirement or the protections for state regulators.