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Panel approves bill to license virtual-currency kiosks amid concerns about scams and custody
Summary
The Commerce committee reported House Bill 26 43, which would create statewide licensing and regulation for virtual-currency kiosks, after debate about predatory placement, custody of purchased currency and whether a ban or regulatory regime is preferable. The measure was reported as committed, 17–9.
House Bill 26 43, which would establish statewide licensing and regulatory requirements for virtual-currency kiosks, was reported out of the Commerce committee after debate over consumer protections and whether kiosks should be banned outright.
Representative Cerisi, a co-sponsor, said the bill aims to ‘‘stop the scam’’ by requiring licensing and safeguards for kiosks that have been used in frauds involving older adults. ‘‘This bill puts in a lot of different safeguards,’’ Cerisi told the committee, adding he and staff worked with banking and other stakeholders on the proposal.
Representative Barger asked detailed procedural questions about how kiosks and transactions operate, including whether the kiosk immediately transfers cryptocurrency to the purchaser’s wallet, who holds the currency at the moment of purchase, and how a 72‑hour cooling-off period would work. Barger said the answers affect how the legislation should be written to avoid unintended consequences. Committee staff and the sponsor described typical kiosk transactions as effectively instant if legitimate and acknowledged ambiguity in practices across operators.
Representative Schaeffer urged consideration of a ban, citing actions in other states, and asked why legislators were pursuing regulation rather than an outright pause or ban. Cerisi said an outright ban had been considered but sponsors were pursuing a regulatory path they believed they could enact and that included consumer safeguards; he invited amendments to tighten protections.
Members repeatedly flagged kiosks’ placement and operation as predatory, particularly for older adults who may be targeted in phone schemes and other fraud. Sponsor and staff said the bill includes fines, fees and a new regulatory structure designed to give the state tools to stop scams.
The committee conducted a roll-call vote; the ayes were 17 and the nays 9. The clerk announced HB 26 43 would be reported as committed to the next stage in the process.
Next steps: HB 26 43 advances as reported; members and sponsors signaled interest in amendments or further hearings to refine custody, the cooling-off period and other consumer-protection details.
