Delaware and New Jersey advance bills to ban crypto ATMs as US scam complaints top $388 million

Delaware and New Jersey have both moved bills that would effectively ban cryptocurrency ATMs, adding to a state-level crackdown that is already spreading across the US. For PSPs, acquirers, and cash-in/cash-out operators, the key point is simple: the regulatory window for kiosk-style crypto access is closing fast, and lawmakers are now writing the rules around scam exposure rather than around crypto use itself.

1. The Delaware House Economic Committee passed House Bill 441 to the full chamber on Tuesday. The bill would ban owning, installing, or operating a cryptocurrency kiosk, and it also targets fiat-to-crypto sales that “replicate or substitute” crypto ATMs, including through point-of-sale systems or cashiers.
2. Delaware’s bill gives operators 90 days after signing for removal of any crypto ATMs. It also sets penalties of up to $10,000 for violations. If a kiosk is found operating, it must refund its fees to all users or pay into a consumer protection fund if users cannot be identified.
3. New Jersey’s Senate Commerce Committee unanimously voted on Monday to send its bill to the full chamber. The New Jersey measure would ban owning, controlling, installing, managing, selling, or offering to sell a crypto ATM, citing “a significant rise in scams associated with their use.” Penalties start at up to $10,000 for a first offense and double to $20,000 for subsequent offenses.
4. The Delaware sponsor, Representative Cyndie Romer, said crypto ATMs “reduce digital currency to a predatory cash grab.” She also pointed to fee economics: regular crypto traders generally do not use crypto ATMs because fees can be upwards of 20% of the transaction value, versus 0.4% to 1% for online exchanges. That fee gap is part of why kiosks remain attractive to scammers and unattractive to normal flow.
5. The enforcement backdrop is not subtle. The FBI said in May that it received nearly 13,500 complaints about crypto ATMs in 2025 involving over $388 million in losses, up 23% in complaints and 58% in losses from 2024. Over half of the complaints involved people aged over 50, with losses exceeding $302 million.

Delaware and New Jersey are not moving alone. At least three other US states — Indiana, Tennessee and Minnesota — have already passed total bans on crypto ATMs, while Arizona and California have capped the value of transactions allowed by crypto ATMs. Bitcoin Depot, once the largest operator of crypto ATMs in the world with over 9,000 kiosks, cited regulatory pressure as a major reason it filed for bankruptcy last month.