Tennessee has become the second U.S. state to ban Bitcoin ATMs, making it a criminal offence to own or operate the machines starting July 1.
Governor Bill Lee signed House Bill 2505 into law on April 13, following concerns that the kiosks were being widely used in scams targeting vulnerable populations.
The legislation follows a similar move by Indiana, which introduced its own ban in March amid growing fraud concerns tied to crypto ATMs.
Lawmakers including Cameron Sexton said the machines “have become a gateway for scammers to exploit Tennesseans, especially our seniors.”
Authorities pointed to data from the FBI showing Americans over 60 lost $257 million to Bitcoin ATM scams last year, marking a 58% year-on-year increase.
Violations of the new law will be treated as a Class A misdemeanor, placing them alongside offences such as simple drug possession and domestic assault under Tennessee law.
The crackdown comes as other states consider stricter measures, including transaction limits and potential bans, signalling rising regulatory pressure on crypto ATM operators across the U.S.
At the time of reporting, Bitcoin price was $77,434.37.