Blab Crypto
Pennsylvania Introduces Bill to Regulate Crypto ATMs, Aiming to Curb Scams
Pennsylvania lawmakers introduced House Bill 2643 on June 19, 2026 to establish a licensing and regulatory framework for cryptocurrency automated teller machines (ATMs). The bill, sponsored by Representative Liz Hanbridge and Majority Chair Joe Ciresi of the House Communications and Technology Committee, does not seek to ban crypto ATMs but requires operators to obtain a license from the Department of Banking and Securities and to meet a set of operational standards.
Under the proposed rules, every crypto ATM operator would need to register with the state’s banking agency. Operators would also be required to set daily transaction limits, cap fees, provide scam warnings, issue receipts, and maintain live customer support. The bill’s language was presented in a press release that emphasized the need for oversight to protect consumers from scams that have targeted vulnerable users.
The push for regulation comes after the Federal Bureau of Investigation reported more than $333 million in losses from crypto ATM scams in 2025. FBI data indicated that seniors accounted for 85 % of the reported losses. According to the report, the lack of state oversight has made it difficult to track or prevent fraudulent activity at these kiosks.
"Cryptocurrency ATMs have very little regulation or oversight, making it difficult to safeguard people from scammers who use them to take advantage of vulnerable people," Hanbridge said in the release. "This bill that Chairman Ciresi and I are introducing looks to change this and protect Pennsylvanians."
The Department of Banking and Securities, a cabinet‑level agency, already oversees traditional banking institutions and is responsible for licensing money transmission businesses. The new bill would extend its authority to crypto ATM operators, requiring them to maintain records of kiosk locations and transaction volumes. The agency would also enforce fee caps and provide a mechanism for consumers to file complaints.
The proposal follows a broader trend of state‑level regulation. West Virginia’s legislature recently passed House Bill 5353, which similarly introduces licensing and reporting requirements for crypto ATMs. New Jersey’s Senate Commerce Committee advanced a bill that would ban crypto ATMs entirely, citing fraud concerns. In contrast, Pennsylvania’s approach seeks to regulate rather than prohibit the technology.
Industry observers note that the bill could affect major ATM manufacturers. Diebold Nixdorf, the largest provider of ATMs in the United States, has supplied equipment for both traditional and crypto kiosks. While the bill does not directly target manufacturers, the licensing and compliance requirements could influence the design and deployment of new crypto ATM units.
The bill has been referred to the House Committee on Banking and Insurance for consideration. If approved, Pennsylvania would become one of several states to impose formal licensing on crypto ATM operators. The legislation would also require operators to provide clear scam warnings and receipts, potentially reducing the number of fraudulent transactions reported by consumers.
Regulators and consumer advocates argue that the measures will improve transparency and consumer protection. Critics, however, caution that the rules could increase operational costs for small operators and limit the availability of crypto ATMs in rural areas.
As of now, the bill remains in committee. No vote has been scheduled, and the final text has not yet been adopted. Stakeholders are monitoring the process closely, anticipating that the outcome could set a precedent for other states.
The proposed regulations represent a targeted effort to address the specific vulnerabilities associated with crypto ATMs. By requiring licensing, transaction limits, and consumer safeguards, Pennsylvania aims to reduce the risk of fraud while maintaining access to cryptocurrency services.
The next steps will involve committee hearings, public comment periods, and potential amendments before the bill can be brought to the full House for a vote. The outcome will determine whether the state can effectively balance consumer protection with the continued growth of digital asset infrastructure.
Under the proposed rules, every crypto ATM operator would need to register with the state’s banking agency. Operators would also be required to set daily transaction limits, cap fees, provide scam warnings, issue receipts, and maintain live customer support. The bill’s language was presented in a press release that emphasized the need for oversight to protect consumers from scams that have targeted vulnerable users.
The push for regulation comes after the Federal Bureau of Investigation reported more than $333 million in losses from crypto ATM scams in 2025. FBI data indicated that seniors accounted for 85 % of the reported losses. According to the report, the lack of state oversight has made it difficult to track or prevent fraudulent activity at these kiosks.
"Cryptocurrency ATMs have very little regulation or oversight, making it difficult to safeguard people from scammers who use them to take advantage of vulnerable people," Hanbridge said in the release. "This bill that Chairman Ciresi and I are introducing looks to change this and protect Pennsylvanians."
The Department of Banking and Securities, a cabinet‑level agency, already oversees traditional banking institutions and is responsible for licensing money transmission businesses. The new bill would extend its authority to crypto ATM operators, requiring them to maintain records of kiosk locations and transaction volumes. The agency would also enforce fee caps and provide a mechanism for consumers to file complaints.
The proposal follows a broader trend of state‑level regulation. West Virginia’s legislature recently passed House Bill 5353, which similarly introduces licensing and reporting requirements for crypto ATMs. New Jersey’s Senate Commerce Committee advanced a bill that would ban crypto ATMs entirely, citing fraud concerns. In contrast, Pennsylvania’s approach seeks to regulate rather than prohibit the technology.
Industry observers note that the bill could affect major ATM manufacturers. Diebold Nixdorf, the largest provider of ATMs in the United States, has supplied equipment for both traditional and crypto kiosks. While the bill does not directly target manufacturers, the licensing and compliance requirements could influence the design and deployment of new crypto ATM units.
The bill has been referred to the House Committee on Banking and Insurance for consideration. If approved, Pennsylvania would become one of several states to impose formal licensing on crypto ATM operators. The legislation would also require operators to provide clear scam warnings and receipts, potentially reducing the number of fraudulent transactions reported by consumers.
Regulators and consumer advocates argue that the measures will improve transparency and consumer protection. Critics, however, caution that the rules could increase operational costs for small operators and limit the availability of crypto ATMs in rural areas.
As of now, the bill remains in committee. No vote has been scheduled, and the final text has not yet been adopted. Stakeholders are monitoring the process closely, anticipating that the outcome could set a precedent for other states.
The proposed regulations represent a targeted effort to address the specific vulnerabilities associated with crypto ATMs. By requiring licensing, transaction limits, and consumer safeguards, Pennsylvania aims to reduce the risk of fraud while maintaining access to cryptocurrency services.
The next steps will involve committee hearings, public comment periods, and potential amendments before the bill can be brought to the full House for a vote. The outcome will determine whether the state can effectively balance consumer protection with the continued growth of digital asset infrastructure.
