Delaware Advances Legislation to Ban Cryptocurrency Kiosks

On June 10, 2026, Delaware lawmakers advanced House Bill 441, proposing a complete ban on cryptocurrency kiosks across the state. If the bill passes, all existing machines must go offline immediately and be physically dismantled within 90 days. This initiative positions Delaware alongside other states like Tennessee and Minnesota, which have previously implemented similar prohibitions.

The sponsors of the legislation argue that the ban is crucial for consumer protection. Representative Cyndie Romer, chair of the House Technology & Telecommunications Committee and a key sponsor, expressed concerns regarding the high fees associated with these ATMs, which can reach up to 20% of the transaction value. In contrast, online exchanges typically charge fees between 0.4% and 1%. Romer stated, "There is no reason to support a business structure that enables scammers to extort money from our most vulnerable populations."

According to the legislation's Senate sponsor, Senator Spiros Mantzavinos, this ban represents a responsible response to the increasing fraud associated with crypto ATMs. He stressed the importance of regulating the evolving digital asset market as cryptocurrency continues to gain popularity.

Data from law enforcement underscores the lawmakers' concerns, with over 13,400 complaints regarding cryptocurrency kiosks reported to the FBI in 2025. This statistic reflects a 23% increase in complaints and a staggering 58% rise in losses from the previous year. Delaware Attorney General Kathy Jennings characterized these kiosks as deceptive, stating, "To the average Delawarean, crypto kiosks may seem like mundane or quirky gas station novelties—but to scammers they are tailor-made to defraud consumers." She categorizes them as obsolete for legitimate investors while remaining susceptible to exploitation by malicious actors.

AARP’s Delaware State Director Lucretia Young emphasized the particular vulnerability of elderly individuals to fraud involving Bitcoin ATMs, highlighting the need for protective measures in the face of these targeted scams.