Lawmakers Hear Wide Testimony as New Hampshire Weighs Limits on Crypto ATMs to Curb Scams

Senators and witnesses told the House Commerce and Consumer Affairs Committee that Senate Bill 482, as amended, would impose consumer protections on digital asset kiosks — commonly called crypto or Bitcoin ATMs — to curb a wave of scams that have cost residents thousands of dollars.

Sen. Tim Magoo, the bill's sponsor, said the measure sets a framework of consumer safeguards including a temporary transaction hold for first‑time users, mandatory disclosures and a refund mechanism if a customer reports a fraudulent transaction within a set window. "This safeguard alone would prevent the vast majority of pressure scams," he said.

The bill prompted lengthy testimony. Brandon Grodd, senior assistant attorney general and chief of the consumer protection and antitrust bureau, said the Attorney General's Office supports the bill because kiosks lack built‑in protections and victims are rarely able to recover funds once a crypto transaction completes. "Once the money goes, it's next to impossible for us to recover it," Grodd said, describing cases in which callers coached seniors to feed cash into kiosks.

Local law enforcement described rising losses. Ray Lammy, Manchester PD fraud detective, said his office had 70 crypto ATM–related fraud cases in the past four years totaling roughly $1.2 million, and that in some recent weeks he saw reports of seniors losing more than $70,000. Lammy said surrounding states' limits have reduced fraud and urged strict limits here.

Advocacy groups pressed for stronger protections. Representatives of AARP and the Commission on Aging urged daily limits on first‑time purchases and longer hold periods to give victims time to stop a transaction and notify authorities. "When fraud becomes harder to commit, slower and less profitable, scammers tend to move on," testified Ken Heidemann, a fraud victim who described being directed to multiple kiosks.

Industry witnesses said operators already use multiple fraud‑mitigation tools and warned that heavy regulatory costs could push legitimate operators out of the state. Mike Geiselhart of Bitcoin Depot described multilayered ID checks, multiple on‑screen warnings and text prompts intended to create friction and block obvious scam flows. "We have voluntary fee refunds and several safeguards," he said, "and only a small fraction of transactions lead to refund requests."

Testimony also disagreed on measurements of the problem. Several witnesses cited studies or state investigations that found very high fraud rates at some kiosks; operators and trade witnesses questioned the methodology and said available analytics show most transactions are legitimate.

The committee's conversation focused on balancing consumer protection and access. Senators and representatives signaled interest in a combination of measures: (1) a limited daily cap for new customers, (2) a short hold period to allow cancellations and law enforcement notification, (3) mandatory warnings and a dedicated law enforcement contact line, and (4) clearer obligations for operators on refunds. Several witnesses suggested targeted protections for customers age 60 and older. The committee scheduled a subcommittee and further stakeholder briefings.

The bill does not impose a statewide ban; law enforcement and some municipal police called for stricter limits or an outright ban in their testimony, while industry and business groups argued for a calibrated approach that preserves service for legitimate users including the unbanked.

Next steps: the committee set a subcommittee and invited additional technical and industry follow‑up, including proposals for exact dollar limits, hold lengths and certification of third‑party verification providers.