Tennessee bans Bitcoin and crypto ATMs statewide, citing scam concerns

Tennessee’s statewide ban on Bitcoin and crypto ATMs remains in effect after a U.S. federal court declined to suspend the law while a constitutional challenge proceeds. Attorney General Jonathan Skrmetti said on July 7 that Public Chapter 766 would continue to be enforceable, meaning installing, operating or allowing a virtual currency kiosk anywhere in Tennessee remains a Class A offense. U.S. District Judge Travis McDonough did not rule on whether the ban is constitutional, but found the plaintiffs had not met the high bar for emergency relief at this stage. The court said the record was limited and indicated that Tennessee’s consumer-protection interest outweighed the request to halt enforcement for now. The ruling also suggested CoinFlip had not presented enough facts to show the law burdened interstate commerce, while the state relied on legislative findings and federal fraud statistics. The case was brought by CoinFlip operator GPD Holdings LLC and kiosk owner Charles Wernicke. In court filings, CoinFlip CEO Ben Weiss said the machines serve cash users, unbanked customers and people who do not want to link bank accounts to crypto platforms, and argued that removing the kiosks from Tennessee would cause lasting harm to customer and retail relationships. The dispute lands amid a broader regulatory shift as some U.S. states move from transaction caps and licensing rules toward outright bans. The American Bankers Association says at least 20 states have adopted some form of crypto ATM regulation. Congress is also weighing the bipartisan Stop Crypto ATM Scams Act, introduced by Representatives Sean Casten and María Elvira Salazar, as scam losses tied to crypto ATMs continue to rise. FBI Internet Crime Complaint Center data for 2024 showed victims lost $247 million in crypto ATM-related scams, many of them older people.