Stop Crypto ATM Scams Act
- Sponsor
- Rep. Casten, Sean [D-IL-6]
- Committees
- Financial Services Committee (primary)
- Last action
- Jun 11, 2026
Bottom line
The bill aims to establish a robust federal regulatory framework for digital asset kiosk operators to combat money laundering and consumer fraud in the crypto ATM sector.
What it actually does
This bill amends the Bank Secrecy Act to mandate federal registration for digital asset kiosk (crypto ATM) operators, requiring them to submit physical addresses of their kiosks to the Treasury Department. It imposes comprehensive anti-money laundering (AML) and anti-fraud requirements, including identity verification, transaction limits for new and existing customers, detailed customer disclosures, anti-fraud policies, customer service hotlines, and a refund mechanism for fraudulently induced transactions.
Proponents argue
Supporters argue that this bill is crucial for protecting consumers from prevalent scams and preventing illicit finance activities often facilitated by crypto ATMs due to their relative anonymity. They contend that a strong regulatory response is necessary to safeguard financial integrity and build trust in the evolving digital asset ecosystem.
Opponents contend
Critics might argue that the bill imposes overly burdensome compliance costs on digital asset kiosk operators, potentially stifling innovation and reducing access to digital assets for legitimate users, particularly in underserved communities. They may also contend that some provisions, such as strict transaction limits, could be disproportionate and that existing AML frameworks could be adapted with less prescriptive measures.
The bill is moderately complex but clearly written, allowing an informed reader to understand its provisions within a reasonable timeframe.
Section 2, amending 31 U.S.C. 5330
Federal Registration and Location Reporting for Digital Asset Kiosks
This provision requires all digital asset kiosk operators to register with the Secretary of the Treasury. They must provide their legal name, contact information for their compliance officer, and a list of the physical addresses for all digital asset kiosks they own or operate. This list must be updated every 90 days, and the information will be made publicly available by the Department of the Treasury.
Supporters argue
Supporters argue that this registration is essential for regulatory oversight, allowing authorities to track and monitor a previously opaque sector, which is critical for combating illicit finance and fraud. Public availability of this information further enhances transparency and accountability.
Critics contend
Critics might contend that these requirements impose significant administrative burdens and costs on operators, particularly smaller businesses, potentially leading to market consolidation or reduced availability of services in certain areas.
Tradeoffs
The provision balances the need for increased regulatory transparency and oversight with the potential for increased compliance burden on businesses operating in the digital asset space.
Section 3(b), adding 31 U.S.C. 5337(b)
Mandatory Anti-Money Laundering (AML) Programs and Reporting
This section mandates that digital asset kiosk operators develop, implement, and routinely update an anti-money laundering (AML) program, which must be filed with the Financial Crimes Enforcement Network (FinCEN). Operators will also be subject to suspicious transaction reporting (SAR) and currency transaction reporting (CTR) requirements under the Bank Secrecy Act. Furthermore, the Treasury Secretary must issue rules requiring operators to adopt risk-based controls for identity verification, monitoring for sanctioned digital asset wallet addresses using blockchain analytics, assessing illicit activity risks, and preventing multiple customers from using the same digital wallet address.
Section 3(c), adding 31 U.S.C. 5337(c)
Daily and Total Transaction Value Limits
This section establishes specific transaction limits for digital asset kiosk users. New customers (defined as those who have never transacted or have done so for less than 14 days) are limited to a total monetary value of no more than $2,000 during any 24-hour period and an aggregate total of no more than $10,000. Existing customers face a daily limit of $7,500 during any 24-hour period. These dollar amounts will be adjusted for inflation every five years, and the Secretary of the Treasury may further adjust them through rulemaking.
Section 3(d), adding 31 U.S.C. 5337(d)
Mandatory Clear and Conspicuous Customer Disclosures
This provision requires digital asset kiosk operators to provide comprehensive written disclosures to customers before each transaction. These disclosures must be in English and the primary language used for advertising, displayed prominently, and include: a warning about irreversible transactions and non-recoverable losses; a statement that digital assets are not legal tender, not government-backed, and not FDIC/NCUA insured; the amount and type of digital assets involved; the U.S. dollar price charged versus the current market price (identifying the trading platform); and an itemized list of all charges, expressed in USD and as a percentage, distinguishing between fees/expenses and the price difference from the market.
Section 3(e), adding 31 U.S.C. 5337(e)
Mandatory Anti-Fraud Measures and Policy
This section requires digital asset kiosk operators to take reasonable steps to detect and prevent financial fraud. This includes providing clear scam warnings to customers before transactions, specifically addressing common fraudulent tactics such as payment requests to strangers, initial contact via social media, impersonation of officials, urgent requests, and using non-customer digital asset wallets. These warnings must be updated annually based on fraud alerts from the Treasury, FBI, and FTC. Operators must also develop, implement, and routinely update a written anti-fraud policy, signed by senior management, detailing policies, procedures, controls, and monitoring mechanisms to address these fraudulent practices.
Section 3(h) and (i), adding 31 U.S.C. 5337(h) and (i)
Customer Service Hotline and Fraud-Induced Transaction Refunds
This provision requires digital asset kiosk operators to provide live customer service during 'extended business hours' (defined as 8 AM-8 PM local time on business days, and 9 AM-5 PM on weekends and holidays), with the phone number clearly displayed on each kiosk. Crucially, it mandates that operators issue a refund for charges collected from a customer within 30 days if the customer was fraudulently induced into the transaction AND files a complaint with the operator that includes transaction details and a copy of a law enforcement report made within 90 days of the transaction.
Section 3(l), adding 31 U.S.C. 5337(l)
Preservation of State Regulatory Authority and Federal-State Coordination
This section clarifies that the Act does not limit State regulatory agencies' authority to require registration, licensing, and compliance with State laws for digital asset kiosk operators. It allows States to issue decals or physical signs for compliant kiosks and impose penalties for misuse. It also explicitly authorizes the Secretary of the Treasury (via FinCEN) to enter into agreements with State regulatory agencies for supervision, coordination of examinations, and sharing of supervisory information. The bill specifies that federal transaction limits established by this Act will supersede conflicting State or local laws established *after* its effective date, but otherwise preserves State authority to impose other consumer protection or anti-money laundering requirements.
This subsection specifies a transition period for existing digital asset kiosk operators. Those operating on the date of enactment must submit their initial list of kiosk locations within 6 months and their first update within 90 days after that 6-month period.
Section 2(b)
Why it matters:This is standard legislative practice for establishing transition periods to allow existing businesses to come into compliance with new regulations without immediate disruption.
Case for: Proponents argue that providing a clear grace period for existing operators ensures a smoother transition to the new regulatory framework, allowing businesses adequate time to adapt their operations and comply with the new registration requirements.
Case against: Some might argue that a 6-month grace period, followed by a 90-day update period, could be seen as too long, allowing non-compliant operators to continue operating without immediate oversight, potentially prolonging exposure to risks the bill aims to mitigate.
Estimated impact: Affects all currently operating digital asset kiosks and their operators, requiring them to take specific actions within a defined timeframe to avoid penalties.
The definition of 'digital asset kiosk' is broad, encompassing not only traditional automated teller machines that facilitate digital asset exchange but also 'a digital or mobile application that facilitates the buying, selling, or exchange of fiat currency for digital assets at a participating physical location in an organized merchant network.'
Section 3(a)(3), adding 31 U.S.C. 5337(a)(3)
Why it matters:It is standard legislative practice to define terms upfront. However, the breadth of this definition is particularly significant as it extends the bill's reach beyond what many might initially assume when hearing 'crypto ATM'.
Case for: Proponents argue that a broad definition is necessary to ensure comprehensive coverage of all physical points of sale for digital assets, preventing operators from circumventing regulations by using alternative setups like mobile apps in retail locations, thereby closing potential loopholes.
Case against: Critics might argue that such a broad definition could inadvertently sweep in a wider range of businesses than intended, leading to unforeseen compliance burdens for entities that do not primarily identify as 'kiosk operators' or whose primary business is not digital asset exchange.
Estimated impact: Significantly expands the scope of entities subject to the bill's regulations, potentially including a broader array of businesses beyond traditional standalone crypto ATM machines.