On May 6, 2026, Iowa Attorney General Brenna Bird announced that Governor Kim Reynolds had signed SF2296 into law, significantly tightening oversight of cryptocurrency ATM operations in the state. The legislation requires all entities owning, operating, marketing, or facilitating crypto kiosks in Iowa to obtain a money transmission license from the Iowa Division of Banking. The measure aims to combat the growing wave of scams targeting consumers through digital financial asset kiosks.
Key Provisions: Licensing and Reporting
Under SF2296, operators must hold a valid money transmission license before deploying any crypto ATM in Iowa. The law defines the scope of covered digital financial assets, updates fee disclosure requirements, and mandates that operators report the location of each kiosk to the state banking division. Any changes to locations must be reported within 30 calendar days, and the division is required to publish the complete list of kiosk sites online. Attorney General Bird stated, 'Finally, we continue to fight to protect Iowans from the scammers who prey on them through crypto ATMs.'
Enhanced Consumer Protections and Penalties
Violations of the licensing and reporting requirements are now classified as unlawful practices under Iowa's consumer protection laws. The attorney general's office may seek injunctions, compel compliance, and impose civil penalties of up to $10,000 per violation for offenses involving digital financial asset kiosks. Notably, the law introduces penalties of up to $100,000 for violating injunctions tied to enforcement actions against crypto kiosk operators. Additionally, operators must disclose the exact dollar amount of all fees collected in a transaction and use the prevailing market value of the digital asset at the time of the transaction rather than exchange price references.
Building on Prior Legislation
SF2296 supplements SF449, signed by Governor Reynolds on May 19, 2025, and effective July 1, 2025. SF449 imposed transaction limits (no more than $1,000 per day per user, with a cumulative $10,000 cap for new users in the first 30 days), refund requirements for fraud victims who report within 90 days, fee caps, fraud warnings, customer support rules, and detailed receipt mandates. Together, the two laws create a comprehensive regulatory framework for crypto ATMs in Iowa.
Context and National Trend
The push for stricter regulations stems from alarming losses to crypto ATM scams. During a 2025 House debate, Representative Shannon Lundgren revealed that an investigation by the Iowa Attorney General found Iowans had lost approximately $20 million to such scams over the prior three years. Iowa joins a growing list of states—including California, New York, and Florida—that have enacted or proposed similar licensing and consumer protection measures for crypto kiosks. By treating crypto ATM operators like traditional money transmitters, Iowa aims to curb financial exploitation and restore trust in digital asset services.