Delaware and New Jersey have moved ahead with bills that would ban crypto ATMs, with lawmakers in both states tying the push to a rise in fraud complaints. If enacted, the two states would join Indiana, Tennessee and Minnesota, which have already adopted statewide total bans.
Delaware bill would force existing machines offline
Delaware’s House Economic Committee advanced House Bill 441 on June 9. The proposal would prohibit the ownership, installation and operation of cryptocurrency kiosks across the state. Existing machines would have to shut down and be physically removed within 90 days after the law takes effect. The bill also targets retail point-of-sale or cashier-assisted crypto sales that replicate a kiosk model.
Representative Cyndie Romer, who sponsored the measure, said crypto ATMs carry high costs and expose residents to fraud. She described the kiosks as reducing digital currency to “a predatory cash grab.” Under the bill, violations would be treated as unlawful trade practices. Operators could face penalties of up to $10,000, and unlawful fees could be refunded to users or paid into Delaware’s Consumer Protection Fund.
New Jersey measure heads to the full Senate
New Jersey’s Senate Commerce Committee advanced Senate Bill 2141 on June 8. The measure would ban businesses from owning, controlling, installing, managing, selling or offering crypto ATMs in the state. It defines crypto ATMs as internet-connected kiosks that allow users to buy, sell, send or receive digital assets using cash, debit cards or credit cards.
Lawmakers in New Jersey linked the proposal to scams involving fake government officials, fraudulent tech support and bank impersonation. The bill sets a penalty of up to $10,000 for a first offense, with later violations carrying penalties of up to $20,000 alongside other consumer fraud remedies. The measure cleared committee without opposition and now awaits consideration by the full Senate. If passed, it would take effect on the first day of the sixth month after enactment.
FBI data adds pressure to the sector
The legislative push followed fresh FBI figures on crypto kiosks. The agency reported 13,460 complaints in 2025 and more than $388.9 million in reported losses nationwide. People over 50 years old accounted for more than half of all complaints. Those numbers have added to a broader crackdown on crypto ATM operators.
Indiana signed the first statewide total ban in March, followed by Tennessee in April and Minnesota in May. Outside the United States, Canada is also considering restrictions at the national level over fraud concerns.
Operators face tighter rules and financial strain
Pressure on the sector is not limited to legislation. The report noted that Bitcoin Depot filed for Chapter 11 bankruptcy after dealing with regulatory pressure, declining revenue and security issues.
Operators have argued that they should not be held responsible for crimes committed by outside scammers through their machines. Some have added on-screen warnings, identity checks and transaction limits. Delaware and New Jersey are taking a different route. Their bills aim to remove the machines entirely instead of imposing operating rules, extending a consumer-protection approach that is gaining ground in 2026.