Tennessee Bans Cryptocurrency ATMs Amid Fraud Concerns

This week, Tennessee Governor Bill Lee signed a law prohibiting the installation of cryptocurrency exchange ATMs across the state, making Tennessee the second U.S. state to implement such a ban after Indiana.
On April 23, 2026, Governor Lee approved bill HB 2505, which mandates the removal or closure of all cryptocurrency kiosks in Tennessee by July 1, 2026, the law s effective date. The House of Representatives passed the bill unanimously with a vote of 94-0 on March 16, 2026, followed by the Senate s support on the same day with a vote of 32-0.
The law defines a cryptocurrency exchange kiosk as any electronic terminal that allows the exchange of virtual currency for cash, bank credit, or other virtual currencies. This includes machines connected to external exchanges as well as those that store digital assets directly.
Operating, installing, or permitting a kiosk on controlled property will be classified as a Class A misdemeanor once the law takes effect. This applies to owners, operators, and property managers, with no exceptions made for existing machines or licensed financial institutions.