Texas lawmakers are considering banning crypto kiosks following $57M in scam losses, with three states already having outlawed Bitcoin ATMs.
Regulation & Gov ·
Texans reported losses of $56.8 million to cryptocurrency kiosks in 2025, exceeding any other state and driving legislative scrutiny. The figure emerged from 1,179 FBI complaints filed in Texas out of 13,460 nationally, with national losses climbing 58 percent to $389 million over the same period. Lawmakers heard testimony that the machines, which convert cash to digital assets at gas stations and convenience stores, have become a primary vector for fraud, with scammers tricking victims into withdrawing bank funds and inserting them into the devices.
Recovery of stolen funds proves nearly impossible once transferred, as money typically flows to unhosted wallets and through mixing services before becoming untraceable. The testimony also cited growing use of artificial intelligence to impersonate law enforcement and state agencies, making social engineering more effective. Three states—Indiana, Tennessee, and Minnesota—have already enacted outright bans on Bitcoin ATMs, while roughly 30 others have implemented some form of regulation since 2023, ranging from transaction caps to victim reimbursement requirements.
A House committee chair indicated Texas is considering legislation that goes beyond regulation, though specific language has not yet been introduced. The scope and timeline of any proposed measure remain unclear, and no formal bill text has been disclosed.