Texas Considers Banning Crypto Kiosks Amid $57M Scam Losses

Texans lost approximately $57 million to crypto kiosk scams in 2025. In response, state lawmakers are pushing for legislation that would ban the machines outright. This move comes as other states, including Indiana and Tennessee, enact similar bans.

Crypto kiosks work by allowing users to exchange cash for cryptocurrency. However, scammers have taken advantage of this process to target vulnerable individuals, often using tactics such as fake tax notices or compromised bank accounts.

The scam typically involves a fraudster contacting the victim and instructing them to deposit cash into a crypto kiosk. The funds are then sent to a wallet controlled by the scammer, making it difficult for victims to recover their losses.

Rep. Cole Hefner has signaled plans to introduce legislation banning crypto kiosks in Texas when the legislature convenes for its 2027 session. Meanwhile, the state's House Speaker and Lt. Gov. have issued interim charges directing committees to study kiosk regulation and elder fraud throughout 2026.