Gate News message, April 25 — Tennessee became the second U.S. state to enact a statewide ban on cryptocurrency ATMs after Gov. Bill Lee signed House Bill 2505 into law on April 13. The law, which officially took effect on April 24, will become enforceable on July 1 and makes it a Class A misdemeanor to operate or host crypto ATMs anywhere in the state, carrying penalties of up to one year in prison and a $2,500 fine.
The ban applies to both crypto ATM operators and businesses that allow the machines on their property. Indiana became the first state to enact a full statewide ban last month. According to an AARP report, 30 states have introduced bills related to crypto kiosks this year alone, with 20 states having passed laws as of 2026. Many of these regulations require operators to hold state licenses, set daily transaction limits, and offer refunds to scam victims.
Crypto kiosks were tied to nearly $390 million in reported losses in 2025, according to FBI data, with older Americans accounting for a disproportionate share of victims. Common fraud schemes involve scammers posing as police or government officials, directing victims to withdraw cash, convert it into cryptocurrency, and transfer funds via kiosks.
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