Delaware and New Jersey Take Bold Steps to Ban Crypto ATMs Amidscams Surge

In a significant regulatory move, lawmakers in Delaware and New Jersey are pushing forward legislation to prohibit the operation of cryptocurrency ATMs, responding to mounting concerns over their alleged role in a surge of financial scams. The proposed bills, aimed at curbing the exploitation of vulnerable populations, have already passed key legislative hurdles in both states.

Legislative Action Sparks Across States

The Delaware House Economic Committee voted on Tuesday to advance House Bill 441 to the full chamber, which prohibits the ownership, installation, and operation of these kiosks. Following suit, the New Jersey Senate Commerce Committee unanimously approved its own ban on crypto ATMs, underscoring a growing trend among U.S. states to take a stand against digital currency-related fraud.

At least three other states—Indiana, Tennessee, and Minnesota—have implemented similar bans, fueled by alarming statistics from the FBI indicating that approximately 13,500 complaints related to crypto ATMs were filed in 2025, totaling over $388 million in reported losses. Notably, complaints involving individuals aged 50 and older accounted for the bulk of these incidents, with losses exceeding $302 million.

Voices of Concern and Advocacy

Cyndie Romer, a key sponsor of the legislation in Delaware, expressed her resolve by stating that crypto ATMs have largely become "a predatory cash grab." Romer highlighted the excessive fees attached to these transactions, which can reach 20% of the transaction value, in stark contrast to the lower fees charged by online exchanges. "There is no justification for supporting a system that facilitates scammers in exploiting our most vulnerable community members," she declared.

Penalties and Compliance Measures

The proposed Delaware bill includes stringent measures, mandating the removal of existing crypto ATMs within 90 days of enactment and imposing penalties of up to $10,000 for non-compliance. A similar framework exists in New Jersey, where offenders could face fines that double for repeat violations.

This wave of legislative action has prompted significant pushback from crypto ATM operators. Bitcoin Depot, once the leading operator with over 9,000 kiosks, recently cited regulatory pressures as a driving factor behind its bankruptcy filing. Despite this, operators maintain that they should not be held accountable for the actions of criminals, asserting that they have implemented various safeguards and warnings to mitigate the risk of scams.

Ongoing Industry Tensions

While some municipalities across the nation consider similar crypto ATM bans, states like Arizona and California have opted for transaction limitations instead of outright bans. As the landscape of digital currencies continues to evolve, the conflict between regulatory bodies and cryptocurrency businesses raises essential questions about consumer protection and the future of digital finance.

As Delaware and New Jersey forge ahead in their legislative efforts, the outcome may set crucial precedents for other states grappling with the challenges posed by the rapid growth of cryptocurrency technologies.

Source: CoinTelegraph - Cryptocurrency & Web3