Crypto ATM ban spreads as Delaware, New Jersey push crackdown

Delaware and New Jersey have advanced bills that would ban crypto ATMs as lawmakers respond to rising scam complaints tied to the machines. 

The moves place both states closer to Indiana, Tennessee and Minnesota, which have already passed total bans.

The push follows new FBI data on crypto kiosks. The agency reported 13,460 complaints in 2025 and more than $388.9m in losses, with people over 50 accounting for more than half of complaints.

Delaware bill would remove crypto ATMs

The Delaware House Economic Committee advanced House Bill 441 on June 9. The bill would ban the ownership, installation and operation of cryptocurrency kiosks across the state.

The proposal would require existing machines to go offline and be physically removed within 90 days after the law takes effect. It also blocks retail point-of-sale or cashier-assisted crypto sales that copy a kiosk.

Representative Cyndie Romer, who sponsored the measure, said crypto ATMs carry high costs and expose residents to fraud. “These kiosks reduce digital currency to a predatory cash grab,” Romer said.

The bill treats violations as unlawful trade practices. Operators could face penalties of up to $10,000, while illegal fees may need to be refunded to users or paid into Delaware’s Consumer Protection Fund.

New Jersey sends ban bill to full Senate

New Jersey’s Senate Commerce Committee advanced Senate Bill 2141 on June 8. The measure would ban businesses from owning, controlling, installing, managing, selling or offering crypto ATMs in the state.

The bill defines crypto ATMs as internet-connected kiosks that let users buy, sell, send or receive digital assets through cash, debit cards or credit cards. Lawmakers linked the proposal to scams involving fake government officials, tech support schemes and bank impersonation.

New Jersey’s measure carries a penalty of up to $10,000 for a first offense. Later violations could bring penalties of up to $20,000, along with other consumer fraud remedies.

The bill would take effect on the first day of the sixth month after enactment. It now awaits action in the full Senate after clearing committee without opposition.

Crypto ATM pressure grows across markets

The bills add to broader pressure on crypto ATM operators in the United States and abroad. Indiana signed the first statewide total ban in March, followed by Tennessee in April and Minnesota in May.

As previously reported by crypto.news, Canada has also moved toward a nationwide crypto ATM ban over fraud concerns. Separate reporting noted that Bitcoin Depot filed for Chapter 11 bankruptcy after facing regulatory pressure, falling revenue and security issues.

Crypto ATM operators have argued that they should not be blamed for crimes carried out by outside scammers. Some operators have added on-screen warnings, identity checks and transaction limits.

Lawmakers in Delaware and New Jersey have taken a different path. Their bills seek to remove the machines rather than regulate them, making crypto ATM bans a growing consumer protection response in 2026.