The Delaware House of Representatives has advanced House Bill 441, legislation that would ban all cryptocurrency ATMs statewide and require existing machines to be removed within 90 days if the measure becomes law.
Supporters of the proposal say Bitcoin kiosks have evolved into a major fraud gateway, enabling criminals to exploit elderly residents and first-time crypto users through high fees and scam payment schemes.
If approved by the Senate, Delaware would become one of the latest U.S. states to impose sweeping restrictions on crypto ATM operations.
Lawmakers Call Bitcoin ATMs 'Predatory'
The legislation is being championed by Representative Cyndie Romer, Chair of the House Technology & Telecommunications Committee, who argues that crypto kiosks offer little legitimate value while exposing consumers to excessive costs and fraud.
According to Romer, transaction fees at many Bitcoin ATMs can exceed 20%, far higher than the 0.4% to 1% typically charged by online cryptocurrency exchanges.
Supporters of the bill believe eliminating the machines would significantly reduce opportunities for fraudsters who frequently instruct victims to deposit cash into crypto ATMs under false pretenses.
Crypto ATM Fraud Continues to Rise
Federal law enforcement statistics have fueled growing concern among policymakers.
According to the FBI, authorities received more than 13,400 complaints involving cryptocurrency kiosks during 2025, representing a 23% increase in reports and a 58% jump in financial losses compared to the previous year.
Delaware Attorney General Kathy Jennings described the machines as appearing harmless while serving as ideal tools for organized scammers.
She warned that many consumers mistakenly view Bitcoin ATMs as ordinary payment machines found in convenience stores or gas stations, unaware of the risks associated with irreversible cryptocurrency transfers.
The AARP Delaware chapter also backed the proposal, noting that elderly residents have become frequent victims of fake emergency scams that pressure them into depositing large amounts of cash into Bitcoin kiosks.
Nationwide Crackdown on Crypto Kiosks Accelerates
Delaware's proposal reflects a broader national trend toward stricter regulation of cryptocurrency ATMs.
Since 2023, more than 30 U.S. states have introduced legislation addressing crypto kiosk oversight, while Indiana, Tennessee, and Minnesota have already enacted statewide bans. Regulators increasingly argue that existing consumer protections have failed to keep pace with the rapid growth of crypto-related fraud.
Under Delaware's proposed legislation, all existing cryptocurrency ATMs would be required to cease operations immediately upon enactment, with operators given 90 days to physically remove the machines from the state.
Senate Vote Will Determine the Future of Crypto ATMs in Delaware
House Bill 441 now moves to the Delaware Senate, where lawmakers will decide whether to approve the statewide ban.
If enacted, Delaware would join a growing number of states seeking to eliminate crypto kiosks entirely rather than regulate them, as officials continue searching for ways to combat billions of dollars in annual cryptocurrency-related fraud.
The debate also highlights the broader challenge regulators face as digital assets become increasingly mainstream while consumer protection concerns continue to grow.
