Tennessee crypto ATM ban takes effect July 1; violators face up to 11 months in prison

Tennessee Governor Bill Lee signed Tennessee House Bill 2505 (HB2505) on April 13, which provides that, starting July 1, installing or using cryptocurrency self-service kiosks and ATMs in the state will constitute a Class A misdemeanor. Under Tennessee law, offenders face up to 11 months and 29 days in jail and a $2,500 fine. Those affected include equipment operators and companies that provide machine hosting.

Legal Provisions of HB2505 and Criminal Liability

(Source: Tennessee General Assembly)

According to official documents from the Tennessee General Assembly, HB2505 was introduced by Tennessee House Speaker Cameron Sexton (Cameron Sexton). In a statement, Sexton said, “Virtual currency self-service terminals have become a way for scammers to exploit Tennessee residents, especially seniors. Once the money is taken, there is almost no chance of getting it back.” Starting July 1, 2026, the relevant equipment within Tennessee will be reclassified as illegal items. Operators and hosting companies must complete compliance by the deadline; otherwise, they will face criminal charges.

Market Participants Affected

According to CoinATMRadar data as of this Monday, Tennessee currently has more than 570 cryptocurrency self-service kiosks and ATMs. The main operators include Bitcoin Depot and CoinFlip. According to a report by Yahoo Finance, the stock of Bitcoin Depot, which is listed on the Nasdaq, fell by about 6.9% at Monday’s close. Cointelegraph contacted a spokesperson for Bitcoin Depot for comment; as of the time this report was published, it had not received a response.

FBI Data: The Scale of Cryptocurrency ATM Scams

According to the FBI’s annual cybercrime complaint report released in April 2026, in 2025 there were more than 13,000 complaints related to cryptocurrency ATMs and self-service kiosks, resulting in losses of more than $389 million. The FBI report classified cryptocurrency and AI-related scams as one of the “worst-loss scams” for Americans in 2025. Total losses from cryptocurrency scams in 2025 for the full year reached $11 billion.

Legislative Developments in the United States

According to a Cointelegraph report, earlier this month, a municipality in Massachusetts had completed a ban on cryptocurrency ATMs; the Minnesota State Senate also recently passed a bill that could ban cryptocurrency self-service kiosks statewide.

Frequently Asked Questions

What are the specific effective date, criminal liability, and applicable parties for Tennessee’s HB2505?

According to official documents from the Tennessee General Assembly, HB2505 takes effect on July 1, 2026. Installing or using cryptocurrency ATMs and self-service kiosks constitutes a Class A misdemeanor. The parties affected include equipment operators and companies providing machine hosting, and the maximum penalties are 11 months and 29 days in jail and a $2,500 fine.

How did Bitcoin Depot respond to the Tennessee ban?

According to a Yahoo Finance report, the stock of Bitcoin Depot, which is listed on the Nasdaq, fell by about 6.9% at Monday’s close. Cointelegraph has sought comment from Bitcoin Depot; as of the time this report was published, it had not received a response.

What does FBI data show about the scale of cryptocurrency ATM scams?

According to the FBI’s annual cybercrime complaint report released in April 2026, in 2025 there were more than 13,000 complaints related to cryptocurrency ATMs and self-service kiosks, resulting in losses of more than $389 million. Total losses from cryptocurrency scams for the full year of 2025 reached $11 billion.