Delaware and New Jersey Advance Bills to Ban Crypto ATMs

Delaware’s House passed a bill to shut down all cryptocurrency ATMs within 90 days, and New Jersey’s Senate voted to send a similar ban to the full chamber, both citing steep scam losses that have disproportionately affected seniors [1].

Key takeaways

• Delaware HB 441 would require every crypto kiosk to cease operation immediately and be removed within 90 days, with violations punishable by up to $10,000 fines [1].
• New Jersey S‑2141 would prohibit ownership, installation, or operation of crypto ATMs and imposes penalties of $10,000 for a first offense, rising to $20,000 for repeat violations [2].
• Lawmakers point to FBI data showing 369 New Jersey victims lost roughly $18 million and more than $26 million in Delaware‑related scams last year [1].
• Nationwide FBI complaints rose to about 13,500 in 2025, with losses exceeding $388 million—a 58 % increase over the prior year [1].
• Industry groups argue the kiosks are not the root cause of fraud and propose enhanced monitoring instead of outright bans [1].

Legislative push in Delaware and New Jersey

In Delaware, House Bill 441 cleared the House Economic Development Committee after Rep. Cyndie Romer called crypto ATMs a “predatory cash grab” [1]. The bill would ban ownership, installation, and operation of any cryptocurrency kiosk, as well as any cashier‑assisted fiat‑to‑crypto sales that mimic ATM functions. Operators would have to shut down machines immediately and physically remove them within 90 days, with violations subject to unlawful trade‑practice charges and fines up to $10,000 [1].

New Jersey’s Senate Commerce Committee advanced Senate Bill S‑2141 unanimously, sending it to the full Senate for a vote [1]. The measure mirrors Delaware’s approach, prohibiting the ownership, control, installation, management, or sale of crypto ATMs. Penalties start at $10,000 for a first offense and rise to $20,000 for subsequent violations [2]. Senate sponsor Sen. Paul Moriarty cited FBI data that 369 New Jersey victims lost about $18 million in the same period [1].

Context and industry response

The push follows a broader trend: Indiana, Tennessee, and Minnesota have already enacted statewide bans, and at least 30 states have introduced legislation affecting crypto kiosks since 2023 [1]. FBI IC3 reports show a sharp rise in complaints and losses tied to crypto ATMs, with more than half of victims over age 60, underscoring concerns about older investors [1][2].

Industry representatives pushed back during the New Jersey hearing. Larry Lipka, general counsel for CoinFlip—the world’s largest crypto kiosk operator—argued that its scam rate is below 1% and suggested mandatory transaction monitoring and blockchain analytics as an alternative to prohibition [1]. Despite the testimony, both committees voted to advance the bans.

Why it matters

The bills signal a growing consensus among state policymakers that existing consumer‑protection mechanisms are insufficient for crypto ATMs, especially given the irreversible nature of crypto transactions and the targeting of vulnerable seniors. If enacted, the bans would remove a key retail access point for digital assets in two populous states, potentially reshaping how consumers acquire cryptocurrency and prompting operators to focus on regulated exchanges or enhanced compliance tools. The next steps include full Senate votes in Delaware and New Jersey, after which the measures could become law as early as the coming legislative session.