A U.S. Senator has indicated that an upcoming market structure bill could potentially address the growing problem of cryptocurrency ATM scams. This statement comes as authorities report increasing instances of fraud perpetrated through these machines, particularly targeting senior citizens.

Senator Cynthia Lummis of Wyoming, a member of the Senate Banking Committee, recently highlighted the issue, stating that she and New York Senator Kirsten Gillibrand hope to address fraud involving Bitcoin ATMs within the broader market structure legislation. Lummis cited a report from the Cheyenne, Wyoming police department, which identified 50 instances of crypto ATM fraud totaling over $645,000 in losses, primarily affecting senior citizens.

The rise of crypto ATM scams has become a significant concern. These ATMs, often found in convenience stores, allow users to exchange cash for cryptocurrencies like Bitcoin, or vice versa, bypassing traditional banks. While they offer a convenient way to enter the crypto market, their anonymity and the irreversible nature of cryptocurrency transactions make them attractive to scammers.

Scammers often contact victims, particularly the elderly, using threats, intimidation, or fabricated stories to coerce them into depositing large sums of money into the scammers' crypto wallets via these ATMs. The Federal Trade Commission (FTC) has reported a dramatic increase in consumer losses related to Bitcoin ATM scams, from $12 million in 2020 to $114 million in 2023. In Peachtree City, Georgia alone, victims have lost $2 million to crypto ATM scams in the past year.

To date, the federal government has not passed specific legislation to address fraud related to crypto ATMs and kiosks. The FBI reported about 11,000 complaints of fraud cases at crypto kiosks in 2024, resulting in losses of over $246 million. While the House of Representatives passed the CLARITY Act in July, that bill did not specifically address ATMs. Similarly, the latest Senate draft bill also does not mention crypto kiosks or ATMs.

Senator Lummis expressed hope that the Senate Banking Committee would vote on a bill to establish clear rules for digital asset regulation and cryptocurrency companies, with the aim of the bill being signed into law by 2026.

In February 2025, Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act, proposing measures such as requiring ATM operators to warn consumers about scams and take steps to prevent fraud at their machines. This bill also proposed daily transaction caps and mandatory verification for large withdrawals.

Some states have already taken action, with California, Vermont, and Minnesota passing laws regulating Bitcoin ATMs, but most of the country lacks such regulations. AARP Wyoming has also called for more regulations around Bitcoin ATMs.

The potential for the market structure bill to address crypto ATM scams is being welcomed by many in the cryptocurrency industry and consumer protection advocates.