Senator Lummis Targets Crypto ATM Fraud in Upcoming Legislation

CHEYENNE, Wyoming — U.S. Senator Cynthia Lummis is advocating for stronger protections against cryptocurrency ATM fraud as the Senate prepares to vote on digital asset regulations by the end of the month.

Lummis, a member of the Senate Banking Committee, expressed her concerns in an X post on Monday, citing a report from the Cheyenne police department that identified 50 instances of fraud involving Bitcoin ATMs, leading to losses totaling over $645,000, primarily affecting seniors.

“This is something that has concerned me for a long time,” Lummis wrote. She and Senator Kirsten Gillibrand, who co-sponsors the bill, aim to address the rising fraud incidents through upcoming market structure legislation.

Reports from the FBI indicate that in 2024, more than 11,000 fraud complaints were filed concerning crypto kiosks, culminating in losses exceeding $246 million. Lummis hopes the new legislation will establish clear regulations to protect consumers from scams.

The proposed bill catalyzed discussions around consumer protections within the cryptocurrency industry. Lummis remarked, “Consumer protections are critical to building a strong digital economy,” and mentioned that this legislation would help prevent elder abuse related to crypto kiosks.

Despite previous legislation efforts, such as the Responsible Financial Innovation Act introduced in 2023, federal laws directly addressing crypto ATM fraud have yet to materialize. In the absence of federal action, numerous state and local governments have enacted their own regulations, with 13 states implementing laws that include transaction limits and mandatory fraud warnings.

Some cities, like Stillwater, Minnesota and Spokane, Washington, have banned cryptocurrency kiosks due to increased scams, while others, like Grosse Pointe Farms, Michigan, have imposed transaction restrictions to safeguard consumers.

Industry leaders have responded to the push for regulation, expressing a desire to balance fraud prevention and innovation. Paul Tarantino, CEO of Byte Federal, a major crypto ATM operator, cautioned against overregulation, emphasizing the need for smart regulations rather than eliminating the industry entirely.

As lawmakers continue to deliberate on the Senate’s market structure bill, the outcome remains uncertain, yet the demand for measures that protect consumers from crypto ATM fraud grows louder.