NASHVILLE, Tenn. – The Tennessee General Assembly unanimously approved legislation to prohibit the installation and operation of virtual currency kiosks, commonly known as Bitcoin ATMs or crypto kiosks.
House Bill 2505, sponsored by House Speaker Cameron Sexton, R-Crossville, and State Rep. Jay Reedy, R-Erin, creates a Class A misdemeanor to own or operate a virtual currency kiosk in Tennessee.
“Virtual currency kiosks have become a gateway for scammers to exploit Tennesseans, especially our seniors, with little hope of recovering their money once it’s gone,” Sexton said. “I’m grateful to Representative Reedy and the Tennessee Sheriff’s Association for their work to pass this legislation and put a stop to these schemes once and for all.”
The measure was drafted in collaboration with law enforcement agencies to protect Tennesseans from scammers. This week, a Middle Tennessee law enforcement agency reported nearly $4 million stolen from dozens of residents in scams tied to crypto kiosks.
“Crypto ATMs have given scammers a fast and easy way to target our citizens and scare them into draining their savings,” Reedy said. “By eliminating these machines, we’re shutting down one of the most common tools used in these schemes and taking a major step toward stopping them.”
Recent data from law enforcement and consumer protection agencies show incidents of scams involving these kiosks have surged since 2023. A report by Chainanalysis estimates $17 billion was stolen in crypto scams and fraud in 2025 alone.
By criminalizing their operation, House Bill 2505 prioritizes public safety over unregulated crypto infrastructure.
The bill now heads to Gov. Bill Lee’s desk for his signature. Once enacted, the ban will go into effect on July 1.
Cameron Sexton represents District 25 in the Tennessee House of Representatives which includes Cumberland and part of Putnam counties.
Jay Reedy represents District 74 in the Tennessee House of Representatives which includes Benton, Houston, Humphreys, Stewart and part of Henry counties.
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