Senate committee advances bill to ban cryptocurrency kiosks after law‑enforcement and victim testimony

The Commerce and Consumer Protection Committee recommended passage of Senate File 3868 on March 10 after extensive testimony from law‑enforcement officials, consumer advocates, victims and industry representatives on the risks posed by cryptocurrency kiosks.

Senator Hemmingsen Yeager, sponsor of the bill, described kiosks as “the center of fraud” and said local governments and police departments had identified serious patterns of victimization. Sam Smith, government affairs director for the Department of Commerce, told the committee the department strongly supports the ban and will include it in a broader consumer‑protection proposal.

Detective Lynn Lawrence of the Woodbury Police Department described cases where victims repeatedly deposited cash into kiosks under scammer direction. “Once the victim puts the cash into the kiosk, the cryptocurrency transfers instantly, anonymously, and irreversibly,” Detective Lawrence said. Elk River investigator Evan Petullo and Ramsey investigator Derek Anderson described similar patterns and large median losses.

Industry witness Larry Lipka, general counsel for CoinFlip, disputed that kiosks are the primary cause and urged stronger consumer controls rather than an outright ban. “It is not the kiosk operators that are facilitating these scams,” Lipka said, and suggested improved safeguards, refund holds and operator practices.

Victims and advocates, including a Sister Foley and Jim Glass of AARP, described large losses and emotional harm; several members cited law‑enforcement evidence and moved to support the bill. The committee recommended SF 3868 be sent to the Senate floor. The transcript records a voice consent; the committee did not publish a roll‑call tally in the hearing record.