Tennessee bans crypto ATMs statewide in unanimous vote, extending liability to host businesses!

Tennessee has become the latest US state to ban crypto ATMs statewide, joining Indiana in a growing wave of state-level crackdowns targeting fraud facilitated through the machines. The legislation passed unanimously, a signal of rare bipartisan consensus on the issue.

The law's most significant provision extends liability beyond the ATM operators themselves to the businesses that host the machines — a structural shift that could accelerate removals as gas stations, convenience stores, and retail outlets weigh the legal exposure of keeping a kiosk on the floor.

Crypto ATMs have become a focal point for regulators after repeated reports of their use in scams targeting elderly and vulnerable users. With two states now imposing outright bans, the pressure on the broader $1B+ kiosk industry is mounting — and other state legislatures are watching closely.