Texas Legislators Target Crypto Kiosk Scams with Potential Ban

Texas lawmakers are considering a ban on crypto kiosks after Texans lost around $57 million to scams in 2025. The machines work like ATMs, but instead of withdrawing cash, they dispense cryptocurrency.

The scammers typically target elderly individuals with urgent stories about unpaid taxes or bank account issues and instruct them to withdraw cash and deposit it into a kiosk. Once the funds are transferred to the scammer's wallet, they're gone forever.

The Texas legislature has issued interim charges directing committees to study regulation and elder fraud throughout 2026. Representative Cole Hefner plans to introduce legislation banning crypto kiosks in the 2027 session.

Texas is not alone in taking action against crypto kiosk scams. Indiana, Tennessee, and Minnesota have all enacted or will enact statewide bans on these machines by mid-2026. A federal bill, the Crypto ATM Fraud Prevention Act (S.710), aims to establish consumer protections targeting fraudulent activity at virtual currency kiosks.