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Committee advances bill to ban virtual crypto kiosks, sets removal timeline
Summary
Lawmakers advanced House File 3642 to prohibit virtual crypto kiosks, citing fraud concerns and an Iowa attorney general report; the bill sets an August 1, 2026 prohibition and a December 31, 2026 removal deadline and names the Department of Commerce as the enforcer.
Representative Koegel presented House File 36 42 and the committee adopted the author's DE6 amendment before moving the bill forward.
Sponsor remarks stressed public-protection goals: citing an Iowa attorney general report, the sponsor said that "98% of transactions at crypto kiosks in their state were tied to scams," framing the bill as a preemptive consumer-protection step. The DE6 also adds definitions and a refund window designed to help seniors and other customers who might be defrauded shortly before the law takes effect.
A member asked about enforcement and the sponsor said the prohibition would be effective August 1, 2026, and kiosk owners would have until Dec. 31, 2026, to remove machines. "The Department of Commerce enforces the virtual currency statutes and they would be in charge of ensuring that that occurs," a sponsor stated.
Committee members from both parties expressed support, including law-enforcement backers who had initially pressed the issue from communities like Saint Cloud. The committee voted to adopt DE6, approve House File 3642 as amended, and move it to the General Register.
The transcript records voice votes; no roll-call tallies were provided in committee minutes.
