Tennessee Turns into Second State to Outlaw Bitcoin, Crypto ATMs – Decrypt

In short
Tennessee has turn into the second U.S. state to impose a sweeping ban on Bitcoin ATMs, which is about to take impact in July.
In March, Indiana imposed a ban on the machines, which federal authorities have recognized as a vector committing fraud towards the aged.
The FBI reported that Individuals aged over 60 misplaced $257 million to scams involving Bitcoin ATMs final yr.
Tennessee has turn into the second U.S. state to outlaw Bitcoin ATMs, making it a legal offense within the Volunteer State to personal or function the machines that federal authorities have recognized as a vector committing fraud towards the aged.Whether or not operators’ kiosks enable clients to buy Bitcoin or different digital belongings with money, they've till July 1 to tug the plug underneath Home Invoice 2505, which Tennessee Governor Invoice Lee signed into legislation on April 13 following the laws’s introduction earlier this yr.The laws was co-sponsored by Republican state representatives Cameron Sexton and Jay Reedy. In a March assertion, Sexton stated the kiosks “have turn into a gateway for scammers to take advantage of Tennesseans, particularly our seniors.”Sexton famous that victims defrauded whereas utilizing Bitcoin ATMs usually have little hope of recovering their cash as soon as it’s gone. That was across the time that native authorities warned of a rip-off the place victims had misplaced $4 million to abroad scammers posing as legislation enforcement.Reedy, a licensed grasp beef producer, stated “Crypto ATMs have given scammers a quick and simple option to goal our residents and scare them into draining their financial savings.”The 2-page invoice, which was launched in February, classifies violations as a Class A misdemeanor, on par in Tennessee with easy drug possession and home assault.In whole, Tennessee hosts 651 Bitcoin ATMs, with a majority of them clustered round Nashville, the state’s most populous metropolis and capital, in line with Coin ATM Radar. The areas vary from fuel stations and smoke outlets to liquor shops.In keeping with FBI numbers launched this month, Individuals aged over 60 misplaced $257 million to scams involving Bitcoin ATMs final yr, a 58% improve year-over-year. Residents underneath 30, for comparability, misplaced $6.6 million to that kind of rip-off in 2025.In March, Indiana grew to become the primary U.S. state to impose a sweeping ban on Bitcoin ATMs, per WLFI. The publication cited one legislation enforcement official who stated, “The variety of experiences has doubled annually for the final 4 years.”Amid an uptick in scams, a number of states have handed laws imposing transaction limits and mandating refunds for victims. In Minnesota, lawmakers are weighing laws that will comply with Tennessee’s lead and ban Bitcoin ATMs throughout the state.Each day Debrief NewsletterStart every single day with the highest information tales proper now, plus unique options, a podcast, movies and extra.