Senator Lummis Pushes for Crypto ATM Fraud Protections Amid Scams

Cheyenne, Wyoming — U.S. Senator Cynthia Lummis raised concerns about increasing fraud linked to cryptocurrency ATMs at a press conference on Monday. Her comments followed a report detailing over 50 instances of fraud in Cheyenne, costing victims more than $645,000, predominantly affecting seniors.

Lummis, a member of the Senate Banking Committee, emphasized the urgency of including regulations for digital assets in upcoming legislation. In a post on X, she noted that she and Senator Kirsten Gillibrand, a Democrat from New York, intend to address this issue in the Senate’s market structure bill scheduled for a vote later this month.

The Federal Bureau of Investigation reported approximately 11,000 complaints regarding crypto ATM fraud in 2024, resulting in losses exceeding $246 million. Lummis has long advocated for stronger regulations to protect consumers, stating, “Consumer protections are critical to building a strong digital economy.”

The proposed legislation aims to establish clear rules for cryptocurrency companies operating in the U.S., which could include mandatory warnings and procedures for ATM operators to reduce fraudulent activities. “I am hopeful bipartisan market structure legislation can build off of the safeguards Senator Gillibrand and I crafted in our 2023 bill to punish bad actors without limiting innovation,” Lummis added.

Though the House of Representatives passed its version of the market structure bill, called the CLARITY Act, it did not specifically mention crypto ATMs. Lummis urged that measures must be implemented to protect vulnerable populations, particularly seniors, who are often targeted in these scams.

Additionally, Lummis highlighted previous failed attempts to legislate against crypto ATM fraud, referencing the Crypto ATM Fraud Prevention Act introduced by Illinois Senator Dick Durbin in February. That bill did not advance for a Senate vote.

While the Senate prepares to vote on the market structure bill, several states have already enacted local laws governing crypto ATMs. Thirteen states have adopted legislation imposing restrictions and requiring registration for these machines to help prevent fraud.

Lummis expressed optimism about the potential impact of the Senate bill, stating it could bring clarity and consistency to the current chaotic regulatory environment. “Preventing elder abuse and applying common-sense rules to digital asset kiosks is an important area of focus,” she said.