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Committee approves consumer-safeguard package for crypto kiosks, including first-time-user blackout
Summary
Lawmakers adopted amendments to SB 2387 SD1 requiring transaction limits, blockchain analytics, refund rights for scam victims, wallet pinning and a first-time-user blackout period (7 days); operators and advocates agreed on many fraud-prevention elements.
The Committee advanced SB 2387 SD1 (digital financial asset transaction kiosks) after extended testimony on March 18, 2026. The bill would impose transaction limits, require blockchain analytics and tracing software, mandate clear disclosures and receipts, and create refund pathways for scam victims.
Consumer groups including AARP Hawaii voiced concern about senior-targeted scams; AARP's Audrey Sue told members that kupuna face disproportionate risk. Kiosk operators (CoinFlip, Hilltop Ventures) supported regulation, recommended money-transmitter licensing, and proposed concrete fraud-prevention features such as a hold period for new users, a "wallet pinning" requirement (one wallet per customer) and a call requirement for customers aged 80 and over.
Industry data presented during testimony included company figures that many scam victims contact operators within 24 hours; operators proposed hold periods (48–72 hours) as a compromise to allow victims to cancel before crypto transfers complete. The committee adopted several of these protections in amendments during decision-making: a seven-day prohibition on purchases by first-time customers, wallet pinning to limit transfers to a single wallet, refund and daily-transaction-limit provisions, and a chair's amendment to phase out kiosk purchases by 2030.
Quotes: "There should be a differentiation between first-time and existing users when it comes to transaction limits," said Louise Payson-Myers (Hilltop Ventures). "If someone gets scammed, the refund goes right back to the company," said Larry Lipka (CoinFlip) while arguing that mandatory refunds and holds reduce harm.
Next steps: SB 2387 SD1 moves forward with the adopted fraud‑prevention amendments; the committee asked for coordination to reconcile similar House and Senate proposals.
