New federal rules crack down on crypto ATM fraud with mandatory warnings and refunds

What it does

This bill requires crypto ATM operators to register their machines with the Treasury Department, implement anti-money laundering and fraud-prevention programs, and disclose all fees and charges to customers before transactions. It sets transaction limits ($2,000 daily for new customers, $10,000 total; $7,500 daily for existing customers), mandates clear warnings about irreversible transactions and lack of FDIC insurance, requires live customer service during business hours, and allows refunds within 30 days if customers were defrauded. The goal is to reduce scams and money laundering through crypto ATMs.

Why we flagged it

The bill's core function is establishing a federal regulatory framework for crypto ATM operators, combining consumer fraud protections (disclosures, refunds, warnings) with anti-money laundering compliance (registration, suspicious activity reporting, blockchain monitoring). It is straightforward consumer and financial crime prevention legislation.

What the text implies

• Transaction limits may push some legitimate high-volume users toward unregulated peer-to-peer crypto exchanges, potentially reducing visibility into crypto flows.
• Requirement for blockchain analytics tools to monitor wallet addresses on sanctions lists creates a new compliance cost that may consolidate the crypto ATM market toward larger operators who can afford sophisticated monitoring infrastructure.
• State-level preemption of transaction limits (subsection (d)(1)) prevents states from imposing stricter caps, potentially limiting state consumer protection authority in this space.
• Refund eligibility requires a law enforcement report filed within 90 days, which may exclude victims who discover fraud later or lack access to law enforcement resources.

Who it affects

Ordinary people using crypto ATMs gain meaningful protections: mandatory fee disclosure, transaction limits that reduce exposure to fraud, clear scam warnings, refund rights for defrauded customers, and operator accountability through registration and compliance requirements. These are direct consumer safeguards against a documented fraud vector.

Who stands to gain

• Compliance software vendors (blockchain analytics, AML monitoring)
• Larger crypto ATM operators with existing compliance infrastructure
• Financial institutions providing backend services to crypto ATM networks

Named in the bill

Department of Treasury, Financial Crimes Enforcement Network (FinCEN), Federal Trade Commission (FTC), Bureau of Consumer Financial Protection (CFPB), Federal Bureau of Investigation (FBI), State regulatory agencies, Digital asset kiosk operators, Crypto ATM industry

Where it stands

2 cosponsors: 2 Republicans.

• Jun 11, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jun 11, 2026 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

2 lobbying clients named this bill on 2 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $80,000 in lobbying spend. A filing names 4 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 41% of bills with at least one filing.

Sean Casten, the sponsor, reported $783,050 in PAC receipts in the 2026 cycle.

• Coinflip — $50,000 on 1 filing
• Tulane University — $30,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.