Delaware and New Jersey lawmakers this week advanced bills that would completely ban cryptocurrency ATMs, adding two more states to a nascent regulatory push that so far has only three outright bans on the books nationwide. The measures, which cleared committee votes in both states, target the standalone kiosks that let people buy and sell digital assets with cash — machines that consumer advocates and law enforcement have increasingly linked to scams targeting the elderly and other vulnerable groups.
What the bills would do
Both proposals are straightforward: no person or business could operate a crypto ATM within state lines. Current operators would have a grace period — 90 days in the Delaware version, 120 days in New Jersey's — to shut down or remove their machines. Violators would face fines and, in some cases, potential license revocation for any related financial services they offer. The bills don't target crypto ownership or peer-to-peer trading, just the physical kiosks.
Why states are zeroing in on ATMs
Crypto ATMs have become a favorite tool for scammers, who instruct victims to withdraw cash and deposit it into the machines, often sending the funds to overseas wallets before anyone notices. Federal Trade Commission data from recent years shows losses in the hundreds of millions tied directly to these kiosks. Unlike bank ATMs, crypto machines often have no daily withdrawal cap tied to a user's bank account — a feature that makes them attractive for fraud. The two states join New York, Vermont, and one other state (the exact tally stands at three) that have already enacted full bans.
Where the bans stand now
The Delaware bill passed the House Commerce Committee on a party-line vote Tuesday and now heads to the full House. New Jersey's version cleared the Senate Economic Growth Committee Thursday and moves to a floor vote in that chamber. Neither has a companion bill across the other chamber yet, but sponsors in both states say they expect quick action. The timing isn't great for the industry: a separate federal bill circulating in the U.S. House would impose similar restrictions nationwide, though that measure has stalled in committee for months.
If both bills become law, the number of states with outright crypto ATM bans would rise to five. That's still a small fraction of the 50 states — but it's also triple the count from a year ago. The next concrete step: Delaware's full House vote is expected within two weeks, with New Jersey's Senate vote likely before the July 4 recess.
