As members of the US Senate Banking Committee prepare to vote on legislation concerning digital asset market structure by month’s end, a supporter of the bill has indicated that the Senate’s version may tackle fraud linked to cryptocurrency ATMs.
In a post on X, Wyoming Senator Cynthia Lummis stated that she and New York Senator Kirsten Gillibrand intend to address issues of fraud associated with Bitcoin (BTC) ATMs within the market structure.
She referenced a report where the Cheyenne police department “identified 50 instances of fraud” primarily affecting seniors via crypto ATMs, amounting to “over $645,000.”
To date, no federal legislation explicitly addressing fraud from crypto ATMs and kiosks has been passed. The US Federal Bureau of Investigation reported approximately 11,000 complaints regarding fraud cases at crypto kiosks in 2024, leading to losses exceeding $246 million.
Lummis’ comment comes as the Senate Banking Committee — of which she is a member — prepares to vote on a bill aimed at establishing clear regulations for digital assets and cryptocurrency firms in the US. The Wyoming senator expressed hopes that the bill could be signed into law by 2026.
The US House of Representatives passed its version of market structure, the CLARITY Act, in July, although the final text appears not to address ATMs, except potentially for exchanges establishing “automated systems in accordance with industry standards.”
The latest Senate draft bill presented by Republican leadership in September also did not refer to crypto kiosks or ATMs.
Related: Crypto ATM limits and bans sweep across US: Here’s why
Many in the cryptocurrency sector have been looking to Congress for updates on market structure since the House approved the CLARITY Act. Recently, congressional members met with several industry executives to discuss upcoming legislation, including the market structure bill and a proposal allowing the US government to hold up to 1 million BTC in a national crypto reserve.
Lummis’ comments implied that the Senate’s version of market structure remains subject to changes as of Monday. House Republicans have already voted to retroactively include a ban on central bank digital currencies (CBDCs) in the CLARITY ACT, but the final text of the Senate bill remains uncertain as of this publication.
Cointelegraph contacted Lummis’ office for comments, but no response was received prior to publication.
Not the first federal law to propose addressing crypto ATM fraud
In February, Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act, aiming to tackle what he termed an “alarming trend of crypto ATM fraud” in the US. The bill suggested requiring ATM operators “to inform consumers about scams and implement reasonable measures to avert fraud at their machines.”
This bill was sent to the Senate Banking Committee but did not progress to a floor vote.
US states and cities are getting in on it, too
In the absence of comprehensive federal legislation addressing crypto ATM fraud, many US states and local governments have enacted their own regulations.
Cities such as Stillwater, Minnesota and Spokane, Washington have banned crypto kiosks and ATMs due to a rise in scam activities, while Grosse Pointe Farms, Michigan’s city council preemptively placed a $1,000 daily transaction limit on crypto kiosks, even though the area had no crypto ATMs at the time the rule passed.
As of August, 13 US states have enacted laws restricting crypto ATM operations, including daily transaction caps, refund policies for fraud victims, and visible warnings at the kiosks. Additional measures have included mandatory registration with state authorities.
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