Senators Push for Action on Crypto ATM Fraud as Market Structure Bill Nears Vote

Senator Cynthia Lummis (Wyoming) has suggested that the US Senate’s upcoming digital asset market structure bill could address growing concerns about fraud involving cryptocurrency ATMs. As members of the Senate Banking Committee prepare to vote on the legislation by the end of the month, Lummis and her colleague Senator Kirsten Gillibrand (New York) are pushing to include protections against scams involving crypto kiosks.

Lummis highlighted a report from the Cheyenne Police Department, which found 50 instances of fraud primarily affecting seniors through Bitcoin ATMs in Wyoming. The total losses amounted to over $645,000. This issue is not isolated. In 2024, the FBI received more than 11,000 complaints regarding fraud at crypto kiosks, resulting in over $246 million in losses.
The Senate’s Digital Asset Market Structure Bill
The Senate Banking Committee, where Lummis serves, is set to vote on a bill to regulate digital assets and cryptocurrency companies in the US. Lummis expressed hope that the legislation would be signed into law by 2026. However, the most recent draft of the bill, released by Republican leadership in September, did not specifically mention crypto ATMs or kiosks.

The House of Representatives passed its own version of a digital asset market structure bill in July, called the CLARITY Act. However, the final version of the bill did not address crypto kiosks either, though it did include provisions about automated systems in the crypto exchange industry.

The Crypto ATM Fraud Prevention Act, introduced by Senator Dick Durbin (Illinois) in February, was the first federal proposal to specifically target crypto ATM fraud. The bill aimed to require ATM operators to warn consumers about scams and implement reasonable measures to prevent fraud. However, the bill was referred to the Senate Banking Committee but did not move forward for a floor vote.
State and Local Responses to Crypto ATM Fraud
In the absence of a federal solution, several US states and local governments have taken matters into their own hands. Stillwater, Minnesota, and Spokane, Washington, have banned crypto ATMs due to the rise in scams. Meanwhile, Grosse Pointe Farms, Michigan, introduced a $1,000 daily transaction limit on crypto kiosks, despite having no such machines in the area at the time.

As of August, 13 US states have enacted laws regulating crypto ATMs. These measures include transaction limits, mandatory refunds in the event of fraud, prominent warnings on machines, and requirements for operators to register with state authorities.

As the Senate Banking Committee prepares to vote on its market structure bill, Senator Lummis’ remarks suggest that the issue of crypto ATM fraud may still be under consideration. The CLARITY Act and the Senate’s upcoming bill are expected to set the tone for digital asset regulation in the US. Meanwhile, ongoing state-level action continues as local governments respond to growing concerns about the risks associated with crypto kiosks.