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Committee weighs ban on cryptocurrency kiosks as operators and consumer advocates clash
Summary
HB1642, which would ban kiosks that convert U.S. currency into digital assets beginning Oct. 1, 2026, prompted sharply divided testimony: consumer-protection witnesses urged the ban to curb scams targeting older adults, while kiosk operators and some law-enforcement partners urged regulation and guardrails instead of a full prohibition; the committee moved the bill forward with reservations and some members voting with reservations.
Lawmakers in the House Judiciary & Hawaiian Affairs Committee heard hours of testimony for and against House Bill 1642, a proposal to ban digital-asset kiosks that accept U.S. currency starting Oct. 1, 2026.
Emma Olsen of the Office of Consumer Protection told the panel the office stands in strong support, citing national enforcement actions and data indicating kiosks are frequently linked to scams. “Enforcement actions in other states and federal data show that a substantial percentage of kiosk transactions are linked to scams,” Olsen said, and she argued that a ban on cash-accepting kiosks best protects consumers.
Kaylee Lopez (AARP Hawaii) testified in strong support and highlighted FBI data showing large-scale losses nationwide and disproportionate harm to older adults. “Fraud prevention…is one of our highest priorities,” Lopez told the committee, urging lawmakers to adopt measures that prevent kiosks from becoming a vehicle for scams.
Operators and industry representatives urged a different approach. Louise Pays, identifying herself as chief compliance officer for Hilt/Hill Ventures (a kiosk operator), said her firm is federally licensed as a money transmitter and urged regulatory guardrails—warning labels, transaction limits, receipts and targeted protections for seniors—instead of an outright ban. Chip Myers, an owner-operator, testified the kiosks serve unbanked and underbanked residents who lack access to mainstream crypto exchanges and that humane regulations would better protect vulnerable customers than a ban.
Committee discussion centered on whether the bill should be a ban (House draft) or whether regulatory guardrails (Senate bills offered as models) would achieve consumer protections while preserving access for unbanked residents. At decision point the committee moved HB1642 out of committee, with several members recording reservations about a ban and urging continued inter-chamber alignment with the Senate version. The recommendation was adopted; several members recorded votes with reservations.
Why it matters: The bill pits consumer-protection concerns—especially for older adults targeted by scams—against access concerns for unbanked/underbanked residents and regulated operators. How the Legislature balances prohibition versus regulation will affect enforcement, compliance burdens, and financial access.
What’s next: The committee advanced HB1642 (HD1) as drafted in the House but noted the Senate regulatory alternative and requested additional inter-chamber coordination; the matter may re-emerge with technical tweaks or a substituted Senate approach.
