Tennessee Lawmakers Pass Crypto ATM Ban, Triggering Removals by July 1

Key Takeaways:

• Governor Bill Lee signed HB 2505 connected April 23, 2026, making Tennessee the 2nd authorities to prohibition crypto ATMs.
• The FBI linked astir $142 cardinal successful losses from Tennessee crypto scams successful 2025, driving bipartisan support.
• All virtual currency kiosks successful Tennessee indispensable beryllium removed oregon unopen down earlier the July 1, 2026, effectual date.

House Passes 94-0 Crypto ATM Ban, Forcing Retailers to Remove Machines by July 1

House Bill 2505, sponsored by House Speaker Cameron Sexton (R-Crossville) and Rep. Jay Reedy (R-Erin), passed some chambers without a azygous dissenting vote. The House approved the measurement 94-0 connected March 16, 2026. The Senate matched that number the aforesaid day, 32-0.

The instrumentality takes effect July 1, 2026, and applies to each virtual currency kiosks operating successful Tennessee, including machines already installed.

Under the caller law, a virtual currency kiosk is defined arsenic immoderate physics terminal that enables the speech of virtual currency for money, slope credit, oregon different virtual currency. That includes machines connected to outer exchanges arsenic good arsenic those holding integer assets directly.

Tennessee Governor Bill Lee (pictured above) joins Indiana Governor Mike Braun arsenic some states present prohibition crypto ATMs.

Operating, installing, oregon allowing a kiosk connected controlled spot becomes a Class A misdemeanor erstwhile the instrumentality is enforced. Owners, operators, and spot managers each autumn wrong its reach. The measure provides nary exceptions for existing machines oregon licensed fiscal institutions.

Lawmakers pointed to fraud arsenic the superior crushed for the ban. The FBI’s 2025 Internet Crime Report identified astir $142 cardinal successful reported cryptocurrency scam losses successful Tennessee alone. Kiosks person reportedly been a preferred instrumentality for scammers due to the fact that the transfers are fast, hard to trace, and astir intolerable to reverse.

“Virtual currency kiosks person go a gateway for scammers to exploit Tennesseans, particularly our seniors, with small anticipation of recovering their wealth erstwhile it’s gone,” Sexton remarked.

Reedy echoed that concern. “ Crypto ATMs are precise often utilized successful scams, particularly ones that people seniors successful our state. These ATMs let fast, hard-to-trace transfers of money,” helium said.

The Tennessee Sheriffs’ Association and AARP were among the user advocates who pushed for action, with unit gathering aft crypto ATM fraud accrued starting successful 2023. Earlier versions of the authorities considered transaction limits and stricter regulations. Lawmakers chose a afloat prohibition instead.

According to coinatmradar.com, 20 progressive crypto ATMs presently service the Murfreesboro area, with an further instrumentality successful adjacent McMinnville. The kiosks are embedded successful mundane retail locations, including convenience stores, baccy and vape shops, and vicinity liquor stores.

Every 1 of those locations faces a hard deadline. Under HB 2505, operators and spot managers indispensable decommission oregon region each kiosks by July 1, 2026. No grace play is written into the law. Legitimate users who relied connected in-person crypto transactions volition request to displacement to online exchanges oregon wallets.

Indiana moved archetypal connected a statewide ban. Tennessee is present second. Other states watching fraud information intimately whitethorn follow. The instrumentality is enrolled arsenic Public Chapter 766 and was transmitted to the politician connected April 13, 2026, earlier being signed 10 days later. Enforcement begins successful conscionable implicit 2 months.