Why did the federal court allow Tennessee's cryptocurrency ATM ban to take effect?

The federal court ruled that the plaintiffs did not meet the legal standard for emergency relief. Although the court acknowledged potential economic harm, it found the public interest in enforcing Tennessee's law outweighed those concerns.

What does Tennessee's cryptocurrency ATM law prohibit?

Tennessee's Public Chapter 766 makes it a Class A misdemeanor to knowingly install, permit, place or operate a cryptocurrency ATM in the state. Lawmakers said the measure is intended to reduce fraud involving cryptocurrency transactions.

Why did CoinFlip challenge Tennessee's cryptocurrency ATM ban?

CoinFlip and Private IT Corporation argued that Tennessee's cryptocurrency ATM ban is unconstitutional and sought to block the law before it took effect. The broader constitutional lawsuit will continue while the ban remains in force.

How large is CoinFlip's cryptocurrency ATM business?

CoinFlip operates more than 5,500 Bitcoin (CRYPTO:BTC) ATMs across 48 US states and several countries. The company said Tennessee's ban would affect its operations within the state.

Which US states have banned cryptocurrency ATMs?

Tennessee, Indiana and Vermont have banned cryptocurrency ATMs. Other states, including Delaware, North Carolina, Virginia and Texas, have introduced or considered measures such as stricter regulations and fraud controls instead of outright bans.

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Tennessee crypto ATM ban remains in force

Written by Jon CuthbertPublished Jul 9, 2026, 3:00 AM

A US federal court has allowed Tennessee's cryptocurrency ATM ban to remain in effect while a constitutional challenge proceeds.
The court ruled that the public interest outweighed the economic harm claimed by cryptocurrency ATM operators seeking emergency relief.
The lawsuit will continue as Tennessee defends the law as part of its efforts to reduce cryptocurrency-related fraud.

A US federal court has allowed Tennessee's ban on cryptocurrency ATMs to remain in force after denying an emergency request by CoinFlip and Private IT Corporation to block the law before it took effect on July 1.

The lawsuit challenged Public Chapter 766, which makes operating a cryptocurrency ATM in Tennessee a Class A misdemeanor, but the court found the plaintiffs had not met the legal standard required for emergency injunctive relief.

“Cryptocurrency ATMs are tools for scammers targeting vulnerable Tennesseans and are rarely used for anything approaching a legitimate purpose,” said Tennessee Attorney General Jonathan Skrmetti.

The court acknowledged the businesses could face economic harm but ruled that the public interest in enforcing legislation passed by the Tennessee General Assembly outweighed those concerns, while also finding the plaintiffs had not shown they were likely to succeed on their constitutional claims.

The constitutional challenge will continue while the law remains enforceable, and because the case involves state legislation rather than a listed company, there was no share price reaction.

CoinFlip operates more than 5,500 Bitcoin (CRYPTO:BTC) ATMs across 48 US states and several countries, while Private IT Corporation joined the lawsuit after arguing the ban threatened its Tennessee operations.

Tennessee joins Indiana and Vermont in banning cryptocurrency ATMs, while other states including Delaware, North Carolina, Virginia and Texas have pursued or considered alternative measures aimed at reducing cryptocurrency-related fraud.

At the time of reporting, Bitcoin price was $62,025.70.

Tennessee crypto ATM ban remains in force

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