According to ChainCatcher, Delaware and New Jersey are advancing legislation aimed at a full ban on the installation and operation of cryptocurrency ATMs, also known as Crypto ATMs. The core rationale cited in the legislative push is that these machines have been widely used in fraud-related activity, leading to losses for consumers.
Delaware Bill Would Require Existing Machines to Be Removed Within 90 Days
In Delaware, the House Economic Development/Banking/Insurance & Commerce Committee has passed the relevant bill. The proposal would prohibit the possession, installation, or operation of crypto ATMs. It would also require existing machines to be removed within 90 days after the bill takes effect.
The Delaware bill sets penalties for violations at up to $10,000. It also allows related costs to be recovered or directed into a consumer protection fund. The structure of the bill places both new deployments and existing machines under the proposed prohibition.
New Jersey is moving in a similar direction. The New Jersey Senate Commerce Committee has unanimously passed a comparable bill that would ban business activities related to crypto ATMs. Under the New Jersey proposal, penalties for violations could reach as high as $20,000.
FBI Data Shows Rising Complaints and Losses Linked to Crypto ATMs
The state-level legislative efforts come against the backdrop of federal data on crypto ATM-related fraud. According to May data from the U.S. Federal Bureau of Investigation, complaints involving crypto ATMs in 2025 approached 13,500 cases. Reported losses exceeded $388 million, a clear increase from the previous year.
The FBI data also showed that more than half of the victims were over the age of 50. That age profile has become part of the context surrounding the proposed bans in Delaware and New Jersey, where lawmakers are focusing on consumer losses tied to these machines.
Several other U.S. states, including Indiana, Tennessee, and Minnesota, have already fully banned crypto ATMs. Some states and local governments have also imposed limits on the size of individual transactions. Under this regulatory pressure, crypto ATM operators continue to face business challenges. Bitcoin Depot, described as an industry leader, previously filed for bankruptcy due to a deteriorating operating environment.
Operators, however, have emphasized that their machines include risk warnings and transaction restrictions. They have also denied that they should bear direct responsibility for fraud committed by third parties.