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Delaware and New Jersey advance bills to ban crypto ATMs amid scam concerns

Delaware and New Jersey advance bills to ban crypto ATMs amid scam concerns

Delaware’s House Economic Committee sent HB441 to the full House, while New Jersey’s Senate Commerce Committee unanimously advanced a ban with steep penalties as lawmakers target fraud tied to crypto kiosks.

Fact Check
Both components of the claim are confirmed by authoritative sources. The official Delaware House Democrats press release and the Delaware General Assembly bill detail page confirm HB441 was advanced by the House Economic Committee on June 9, 2026, sponsored by Rep. Romer and Sen. Mantzavinos, targeting crypto kiosk fraud. The Jersey Vindicator confirms New Jersey's Senate Commerce Committee unanimously advanced S-2141 the same day, sponsored by Sen. Moriarty, with the ban treated as an unlawful practice carrying penalties. The only minor nuance is that the press release describes the committee 'releasing' the bill to the full House (consistent with 'sent HB441 to the full House'), and the NJ measure carries penalties as described.
Summary

Delaware and New Jersey are advancing legislation to ban the installation and operation of crypto ATMs, reflecting a broader push to curb scams tied to the machines. Delaware’s House Economic Committee sent HB441 to the full House after lawmakers cited fees of up to 20% on crypto ATMs compared with roughly 0.4% to 1% on online exchanges. The bill would require existing kiosks to be removed within 90 days and allow fines of up to $10,000. In New Jersey, the Senate Commerce Committee unanimously advanced a crypto ATM ban that would impose penalties of up to $10,000 for a first violation and $20,000 for repeat offenses. The measures are framed as consumer-protection efforts targeting fraud at cash-to-crypto access points that have drawn growing scrutiny from policymakers. FBI data for 2025 showed nearly 13,500 crypto ATM complaints and losses exceeding $388 million, underscoring the scale of the issue even as restrictions may push some activity into less regulated channels.

Terms & Concepts
  • crypto ATMs: Physical kiosks that let users buy, sell, or send digital assets, often by converting cash into crypto.
  • online exchanges: Internet-based trading platforms where users buy or sell digital assets, typically at lower fees than physical kiosks.
  • consumer-protection: Measures intended to reduce harm to users, including fraud, scams, and inadequate safeguards.