This Act requires digital asset kiosk operators to register their locations, implement anti-money laundering and anti-fraud measures, set transaction limits, and provide clear customer disclosures to combat scams.
Sean Casten
Representative
IL-6
The Stop Crypto ATM Scams Act aims to protect consumers by imposing federal registration and robust anti-money laundering requirements on digital asset kiosk operators. This legislation mandates the public disclosure of all kiosk locations and establishes strict transaction limits, mandatory fraud warnings, and clear customer disclosures regarding transaction irreversibility and asset risks. Furthermore, it requires operators to implement anti-fraud policies and provide avenues for customer refunds in cases of fraudulent inducement.
New Crypto ATM Rules Set $2,000 Limit for New Users and Mandate Clear Fee Disclosures
If you’ve walked into a gas station or a convenience store lately, you’ve probably seen a Bitcoin ATM tucked in the corner. While they look like standard cash machines, they’ve become a bit of a Wild West for scammers and sky-high hidden fees. The 'Stop Crypto ATM Scams Act' is looking to change that by treating these kiosks more like the financial institutions they actually are. Starting 180 days after it passes, operators will have to register every single machine’s physical address with the Treasury Department and update that list every 90 days. This means if a machine is used for a scam, the government actually knows where it is and who owns it (Sec. 2).
Slowing Down the Scams
One of the biggest changes involves how much money you can move through these machines. If you’re a new customer—meaning you’ve never used that operator before or your first transaction was less than two weeks ago—you’re capped at $2,000 in a 24-hour period and $10,000 total (Sec. 3). For everyone else, the daily limit is $7,500. This is a speed bump for 'pig butchering' or grandparent scams where victims are often pressured to liquidate their life savings into crypto in one afternoon. The bill also forces operators to show you a bold warning before you hit 'send,' specifically mentioning that transactions are irreversible and flagging common tactics like someone asking for payment via a QR code for a person you've never met.
No More Hidden Math
If you’ve ever used one of these machines, you know the fees can be brutal and confusing. This bill requires 'clear and conspicuous' disclosures on a dedicated screen before the transaction starts. Operators have to show you the current market price from a registered exchange versus the price they are charging you, along with an itemized list of fees in both dollars and percentages (Sec. 3). After the transaction, you get a receipt with the exact time, the wallet addresses involved, and a phone number for live customer service available from 8 a.m. to 8 p.m. on weekdays. For a worker just trying to send a little money home or a hobbyist buyer, this means no more guessing how much of your cash actually made it into the digital wallet.
Accountability and the Fine Print
For the companies running these machines, the honeymoon of light regulation is over. They’ll need to implement full anti-money laundering programs and use blockchain analytics to make sure they aren't processing money for sanctioned individuals. There’s also a significant new consumer protection: if you can prove you were 'fraudulently induced' into a transaction and you file a police report within 90 days, the operator is required to refund your fees within 30 days (Sec. 3). While states can still add their own stricter rules, this bill sets a national floor to ensure that a quick trip to a crypto kiosk doesn't turn into a financial nightmare.