Overview
- Delaware legislators have moved forward with House Bill 441, aimed at banning cryptocurrency kiosks across the state.
- Should the bill be enacted, it will mandate that current machines shut down immediately and be removed within a 90-day timeframe.
- This legislation marks one of the most extensive state-level prohibitions on crypto ATMs, joining similar actions in states like Tennessee, Indiana, and Minnesota.
On Tuesday, Delaware lawmakers approved House Bill 441, which proposes a complete ban on cryptocurrency kiosks throughout Delaware.
The bill's proponents argue that this ban is crucial for consumer protection against “predatory” practices associated with these machines.
Representative Cyndie Romer, who chairs the House Technology & Telecommunications Committee and is a primary supporter of the bill, stated, "these kiosks reduce digital currency to a predatory cash grab," emphasizing the significant fee discrepancies between crypto ATMs and conventional exchanges.
According to Romer, "Typical crypto traders usually avoid using crypto ATMs due to their exorbitant fees, which can exceed 20% of the transaction value, compared to the 0.4% to 1% fees charged by online exchanges.” She further noted, “There is no justification for endorsing a business model that allows fraudsters to exploit our most vulnerable populations."
Senator Spiros Mantzavinos, who is also a sponsor of the bill in the Senate, labeled the ban a “responsible measure” to combat fraud linked to crypto ATMs, remarking that, "As cryptocurrency becomes more integrated into our society, we need to establish proper regulations for this emerging digital asset market."
Statistics from law enforcement highlight the extent of crypto ATM-related fraud as cited by the lawmakers.
The FBI reported over 13,400 incidents involving cryptocurrency kiosks in 2025, indicating a 23% rise in complaints and a 58% increase in losses compared to the previous year.
Delaware Attorney General Kathy Jennings described these machines as deceptively innocuous. "To an average Delawarean, crypto kiosks might appear to be harmless or quirky gas station features—but to scammers, they are perfectly designed to defraud consumers," she stated, labeling them as “outdated for legitimate investors and vulnerable to abuse against everyone else."
AARP’s Delaware State Director Lucretia Young pointed out the particular vulnerability of older adults to scams involving Bitcoin ATMs. “Many Delawareans who were misled by fraudsters into thinking they needed to transfer their funds to safeguard their savings, assist a relative, or address a fictitious emergency have ended up depositing money into these kiosks,” she remarked, noting that losses from crypto scams are frequently unrecoverable.
The proposed legislation in Delaware is indicative of a broader national effort to regulate crypto ATMs. Since 2023, thirty states have passed laws governing the regulation of these kiosks, with Indiana, Tennessee, and Minnesota implementing statewide bans.
House Bill 441 is now set to be reviewed by the Delaware Senate. If it passes, the state will join a growing number of jurisdictions imposing strict regulations on crypto ATMs as fraud losses continue to escalate across the country. The legislation would require all existing machines to cease operations immediately upon its enactment, with a mandate for physical removal within 90 days.