Massachusetts crypto ATM ban advances after the state Senate voted Thursday to prohibit the machines through an amendment to a broad economic development bill.
Lawmakers acted after federal data showed residents reported nearly $7 million in kiosk-related scam losses across the state alone during 2025.
The measure is not yet law. Its future now depends on negotiations between the Senate and House over the final version of the economic development package. Similar language previously failed twice in the House, once in its bill and once in an earlier budget proposal.
Senate Targets Crypto Kiosk Scams
Consumer advocates and law enforcement officials say crypto ATMs allow scammers to move victims’ cash into cryptocurrency within minutes. The machines resemble traditional cash dispensers and operate in convenience stores, pharmacies and liquor stores across Massachusetts.
Hundreds of these machines are located in convenience stores, pharmacies and liquor stores, giving operators a broad retail presence throughout the state.
Norfolk County Sheriff Patrick McDermott said scams often begin with a phone call or text. Victims are pressured to withdraw savings, deposit the cash into a kiosk and scan a QR code supplied by the caller. The machine then converts the money into cryptocurrency and sends it to an anonymous wallet.
“Once the cash is in there, it’s gone for good,” McDermott said.
FBI Data Shows $6.8 Million Lost
The FBI received 296 complaints involving crypto kiosk scams in Massachusetts during 2025. Reported losses reached $6,834,561, equal to about $19,000 per day. Nationally, the bureau recorded $389 million in losses tied to the same type of fraud over the past year.
AARP Massachusetts supported the Senate action and pushed lawmakers to remove the machines. “A ban on crypto ATMs is now the most effective way to stop the ongoing damage,” state director Jen Benson said in a statement Thursday.
Advocates and elderly residents described the kiosks as a direct channel for scammers seeking fast access to victims’ cash. They also argued that transactions become difficult to recover after funds reach anonymous crypto wallets.
Final Decision Moves to Negotiations
Massachusetts currently has no written rules governing crypto kiosks. It is also the only New England state that leaves the machines unregulated. McDermott said the lack of local safeguards has attracted operators and left removal as the only available response until regulation exists.
Vermont, Minnesota, Indiana and Tennessee have banned crypto ATMs outright. Another 28 states limit their use through different restrictions.
The Senate approved the economic development bill late Thursday night with the crypto ATM amendment included. The vote does not immediately remove any machines or change current law. House and Senate negotiators must now decide whether the provision remains in the final bill sent forward for approval.
