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Senate committee adopts substitute for bill to regulate virtual‑currency kiosks after sponsor cites Iowa fraud findings
Summary
The Senate Committee on Business & Commerce adopted a committee substitute for Senate Bill 17‑05 to regulate virtual‑currency kiosks, adding enforcement tools, receipts and signage requirements and setting an effective date of Sept. 1, 2025.
The Senate Committee on Business & Commerce adopted a committee substitute for Senate Bill 17‑05 to regulate virtual‑currency kiosks, commonly called cryptocurrency ATMs, and favorably reported the substitute to the full Senate.
Senator Parker, who explained the substitute, told the committee the revised measure was drafted to address misuse of kiosks for scams, money laundering and other illicit transactions. The committee substitute extends response times, clarifies receipt requirements (either physical or digital), creates mandatory enforcement mechanisms including cease‑and‑desist and consent‑order authority, provides administrative procedure and appeal rights, establishes fraud‑complaint and refund processes, imposes new signage and law‑enforcement contact requirements, and sets the bill’s effective date to Sept. 1, 2025.
During the briefing Senator Parker told members the committee had received a one‑page summary of an Iowa Department of Justice investigation that, according to his description, found that 98% of reported Bitcoin Depot transactions and 95% of reported CoinFlip transactions in Iowa were scams; he said most victims were over age 60. He presented that finding as an example of the fraud the bill aims to address. The committee adopted the substitute without objection and, on a roll call, the committee reported the substitute favorably by a vote of 8‑0 and sent it to the local and uncontested calendar.
The substitute adds administrative enforcement tools and consumer‑protection measures that sponsors said respond to law‑enforcement concerns; it also provides an appeal process for regulated actors. The committee did not take public testimony at the hearing segment that considered 17‑05, and the record reflects no committee amendments in the hearing transcript beyond the substitute described by the sponsor.
The committee action was a favorable report to the full Senate; further action will occur in subsequent floor or calendar committees.
