Texas lawmakers are weighing a ban on cryptocurrency kiosks after scams tied to the machines drained $57 million from residents. Three states have already outlawed the ATMs. A state committee chair said Texas will go further than just regulating them — hinting at a full prohibition.
The $57 million toll
Crypto kiosks — those standalone machines that let people exchange cash for digital currency — have become a favorite tool for scammers. Fraudsters trick victims into depositing cash, often posing as government officials or tech support. In Texas alone, those scams have cost residents $57 million, according to state data. The machines are largely unregulated, making them hard to police.
A growing crackdown
Three states have already banned crypto kiosks outright. Now Texas could join them. The chair of the Texas House committee overseeing the issue said this week that the state will go beyond regulation. “We’re not just looking at new rules,” the chair said. “We’re looking at whether these machines should be allowed at all.” The statement signals a potential ban is on the table.
What a Texas ban would look like
If passed, Texas would be the largest state to outlaw crypto kiosks. The committee chair argued that regulation alone hasn’t stopped the scams. “The problem is the machines themselves,” the chair said. A ban would likely shutter thousands of kiosks across the state, hitting operators who rely on them for business. But consumer advocates say it’s the only way to stop the fraud.
What’s next
The committee is expected to draft a bill in the coming months. Lawmakers will have to balance consumer protection with the crypto industry’s pushback. For now, the $57 million figure is a stark reminder of the stakes. The chair made clear: Texas isn’t done with crypto kiosks yet.
