Delaware lawmakers moved on Tuesday to advance House Bill 441, a measure that would impose a total ban on cryptocurrency kiosks, also known as crypto ATMs, across the state. The proposal, backed by leaders in both chambers, is being presented as a consumer protection response to what supporters describe as widespread fraud, high fees, and abusive practices tied to the machines.
Representative Cyndie Romer, chair of the House Technology & Telecommunications Committee and sponsor of the bill, said crypto kiosks have become a tool for exploitation rather than a useful financial service. She argued that the machines often charge far higher fees than online exchanges, making them especially costly for users who may already be under financial stress. Romer said regular crypto traders generally avoid these kiosks because transaction fees can reach 20% or more, compared with roughly 0.4% to 1% for online exchanges. She said there is no reason to support a business model that enables scammers to take money from vulnerable people.
Senator Spiros Mantzavinos, the Senate sponsor of the legislation, said the ban is a responsible step as cryptocurrency becomes more common and regulators face increasing pressure to address criminal misuse of the technology. Supporters of the bill say the state must respond to the growing number of scams involving crypto kiosks, which are often used by fraudsters to pressure victims into sending money quickly and irreversibly.
Delaware Attorney General Kathy Jennings also backed the measure, calling crypto kiosks deceptively ordinary-looking devices that can hide serious risks. She said that while the machines may appear harmless to everyday consumers, they are designed in a way that makes them attractive to scammers. Jennings said the kiosks are obsolete for legitimate investors and well suited for abuse.
The concerns are reinforced by federal crime data cited by lawmakers. According to the FBI, there were more than 13,400 complaints involving cryptocurrency kiosks in 2025, a 23% increase from the previous year. The report also showed a 58% rise in losses linked to these complaints year over year, underscoring the scale of the problem that state officials say they are trying to address.
Advocates for older adults are also supporting the ban. Lucretia Young, Delaware state director for AARP, said scams involving crypto kiosks disproportionately target seniors and other vulnerable residents. She noted that victims are often tricked into believing they must move money to protect their savings, assist a family member, or resolve a supposed emergency. In many cases, once funds are sent through a crypto kiosk, the losses are difficult or impossible to recover.
Delaware’s proposal comes amid a broader national crackdown on crypto ATMs and kiosks. Since 2023, 30 states have enacted some form of regulation related to these machines, and states including Indiana, Tennessee, and Minnesota have already passed statewide bans. If Delaware’s bill becomes law, it would require all existing crypto kiosks to stop operating immediately and be physically removed within 90 days.
House Bill 441 now moves to the Delaware Senate for further consideration.
