Delaware and New Jersey advance bills to ban crypto ATMs

First offenses in New Jersey carry a $10,000 penalty. Repeat violations could bring fines up to $20,000 and additional consumer fraud remedies. The law would take effect on the first day of the sixth month after enactment. It cleared committee without opposition and now heads to the full Senate.

The two states join a fast-growing list. Indiana passed the first statewide total ban in March, followed by Tennessee in April and Minnesota in May. Canada has also moved toward a nationwide crypto ATM ban over fraud concerns, as previously reported. Bitcoin Depot filed for Chapter 11 bankruptcy in early 2026 after facing regulatory pressure, falling revenue, and security issues, according to separate reporting.

Crypto ATM operators argue they should not be blamed for crimes committed by outside scammers. Some have added on-screen warnings, identity checks, and transaction limits. Lawmakers in Delaware and New Jersey rejected that approach. Their bills remove the machines, not regulate them.

Who gets exposed. The biggest US crypto ATM operators include CoinFlip, Bitcoin Depot (now in bankruptcy), and Bitstop. Any firm with heavy US kiosk exposure faces a narrowing regulatory path. The FBI logged 13,460 complaints related to crypto kiosks in 2025, with people over 50 accounting for more than half. The average loss per complaint was roughly $29,000.

Timeline. If signed into law, Delaware’s ban takes effect immediately with a 90-day removal window. New Jersey’s would start roughly six months after enactment. State legislatures in both states are still in session, and the bills could reach governors’ desks before the summer recess.

What would reduce the risk for operators. Compliance with voluntary safeguards, such as real-time identity verification and transaction limits tied to user profiles, could blunt the legislative push in other states. Federal legislation preempting state bans remains unlikely in the current session.

What would make it worse. More state-level bans would shrink the domestic market for crypto ATMs and increase operating costs. The Federal Trade Commission or the Consumer Financial Protection Bureau could also step in with nationwide rules, raising the bar for all operators. The Bankruptcy Court handling Bitcoin Depot’s Chapter 11 case may offer a window into how creditors value kiosk networks in a shrinking regulatory environment.