Key facts
- Delaware lawmakers advanced House Bill 441, which would ban cryptocurrency ATMs statewide.
- The bill aims to protect consumers from predatory practices and high fees associated with crypto kiosks.
- Law enforcement data indicates a rise in fraud complaints and losses linked to crypto ATMs.
- If passed, existing machines must cease operations immediately and be physically removed within 90 days.
- The legislation would make Delaware one of several states to enact comprehensive crypto ATM restrictions.
Delaware lawmakers have taken a significant step towards banning cryptocurrency ATMs statewide by advancing House Bill 441. The legislation, which passed the House Technology & Telecommunications Committee, aims to protect consumers from what sponsors describe as "predatory" practices and fraud facilitated by these machines.
Representative Cyndie Romer, the bill's sponsor, highlighted the substantial fee disparities between crypto ATMs and traditional online exchanges, noting that ATM fees can exceed 20% of a transaction's value, compared to 0.4% to 1% for exchanges. She argued that these kiosks are exploited by scammers to target vulnerable populations.
Senator Spiros Mantzavinos, the Senate sponsor, called the ban a "responsible measure" to regulate the growing digital asset market, especially in light of increasing fraud. Data from the FBI supports these concerns, showing over 13,400 complaints involving crypto kiosks in 2025, a 23% increase in complaints and a 58% rise in losses year-over-year.
Delaware Attorney General Kathy Jennings described the machines as deceptively benign, serving as tools for scammers rather than legitimate investors. AARP Delaware State Director Lucretia Young added that many elders have been defrauded through these kiosks, often losing unrecoverable savings.
If enacted, House Bill 441 would require all existing crypto ATMs to cease operations immediately and be physically removed within 90 days. This move aligns Delaware with states like Tennessee, Indiana, and Minnesota, which have already implemented similar statewide bans on crypto kiosks.