Senate Market-Structure Bill Could Address Bitcoin ATM Fraud, Lummis Says

• Market-structure bill could target crypto ATM fraud by requiring operator safeguards.

• FBI data: ~11,000 kiosk fraud complaints in 2024, totaling more than $246 million in reported losses.

• Local law actions: 13 US states have enacted limits, bans, or registration rules for crypto kiosks.

Meta description: Crypto ATM fraud rises; primary keyword crypto ATM fraud—Senators propose market-structure rules to protect consumers. Read steps and state actions.

What is crypto ATM fraud?

Crypto ATM fraud is a type of theft where scammers exploit cryptocurrency kiosks or ATMs to coerce or trick people into sending funds. These schemes frequently target older adults and involve impersonation, fraudulent investment claims, or fake technical-support prompts that result in irreversible crypto transfers.

How could the Senate market structure bill address crypto ATM fraud?

Proponents say the Senate’s market-structure legislation could require clearer operator responsibilities and industry standards for kiosk security. Senators Cynthia Lummis and Kirsten Gillibrand have indicated the bill may add measures to reduce fraud at ATMs by mandating warnings, transaction limits, or monitoring practices.

Law-enforcement data highlights the stakes. The Cheyenne Police Department reported 50 fraud instances affecting mainly seniors and more than $645,000 in losses. The US Federal Bureau of Investigation recorded roughly 11,000 crypto kiosk complaints in 2024, with reported losses exceeding $246 million. These figures motivate targeted regulatory fixes.

Why are states moving ahead on crypto ATM rules?

Without comprehensive federal law, many states and cities have moved quickly to curb kiosk scams. Local actions include outright bans, daily transaction caps, mandatory refund procedures, prominent scam warnings on kiosks, and operator registration with state authorities.

Examples: Stillwater, Minnesota and Spokane, Washington banned crypto kiosks. Grosse Pointe Farms, Michigan adopted a $1,000 daily transaction limit before any machines were installed. As of August, 13 states have enacted restrictions of various types.

Has Congress previously proposed crypto ATM legislation?

Yes. In February, Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act, proposing required consumer warnings and reasonable anti-fraud measures by operators. That bill was referred to the Senate Banking Committee and did not reach a floor vote.

Who is pushing for change and what are the timelines?

Members of the Senate Banking Committee expect to vote on a market-structure bill by the end of the month. Senator Lummis said she hopes the final measure could be signed into law by 2026. The House passed the CLARITY Act in July; the Senate draft released in September has been described as fluid and may be amended to address ATM risks.

Frequently Asked Questions

How many people were affected by crypto ATM fraud in Cheyenne?

The Cheyenne Police Department identified 50 instances of fraud, largely involving seniors, with reported losses totaling more than $645,000.

What steps can operators take to reduce kiosk fraud?

Operators should add clear on-screen warnings, implement transaction caps, require enhanced ID or verification, provide immediate refund procedures, and monitor for suspicious transaction patterns.

Key Takeaways

• Rising problem: Crypto ATM fraud generated significant complaints and losses nationwide in 2024.
• Legislative focus: Senate market-structure proposals may add operator obligations and consumer protections for kiosks.
• State action: With federal law pending, 13 states have enacted local restrictions ranging from limits to bans.

How to reduce your risk at a crypto ATM (How-To summary)

Follow these quick steps to protect yourself when using a crypto kiosk.

1. Confirm identity: Verify the person requesting a transaction is a trusted contact using an independent phone call.
2. Read warnings: Heed on-screen scam warnings and posted notices on the kiosk.
3. Limit amounts: Avoid large single transactions; use small transfers first.
4. Ask for receipts: Obtain and keep transaction receipts and wallet addresses used.
5. Report suspicious activity: Contact local law enforcement and file a complaint with federal authorities if defrauded.

Conclusion

Federal attention on crypto ATM fraud has increased as law-enforcement and local governments document large losses and frequent complaints. Senate market-structure proposals offer a path to impose operator safeguards, industry standards, and consumer protections while states continue to act in the interim. Readers should monitor finalized legislation and follow practical safety steps when using kiosks.