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Senate committee advances ban on cryptocurrency kiosks after sheriffs detail scams
Summary
Law enforcement testimony about seniors and other victims losing tens of thousands at cryptocurrency kiosks helped push SB 2251 to passage; supporters said kiosks enable rapid cross-border fraud that frustrates recovery efforts.
The Commerce and Labor Committee voted to advance SB 2251, which would prohibit installation or operation of virtual-currency kiosks sometimes called Bitcoin ATMs.
Sponsor Sen. Johnson framed the bill as a public-safety and consumer-protection measure: kiosks convert cash to cryptocurrency quickly, making recovered funds difficult to trace and enabling scammers to cash out rapidly. "These machines can be used to move funds in ways that make financial activity harder to trace," Johnson said.
Sheriff Casey Cox of Cumberland County described multiple local incidents in which victims — often seniors — deposited thousands or tens of thousands of dollars at kiosks after pop-up scams or romance scams. "I had a lady put $30,000 in a cryptocurrency ATM in a liquor store," Cox said, describing how the kiosk locked at $27,000 and law enforcement discovered the scam only after the victim sought help. He urged a statewide ban to prevent further losses.
Committee members noted the bill has support from the sheriffs’ association and the Tennessee Bureau of Investigation. Following testimony and brief questions, the committee approved the bill and referred it to the calendar for further action.
