TechFlow News, April 25: According to The Block, Tennessee Governor Bill Lee signed House Bill 2505 on April 13, officially classifying cryptocurrency ATMs (virtual currency self-service terminals) as prohibited devices. The law will take effect on July 1, 2026. Passed unanimously by both chambers of the state legislature, the bill bans the installation or operation of cryptocurrency ATMs statewide. Violators face Class A misdemeanor charges, with penalties including up to one year of imprisonment and a fine of up to $2,500.
Notably, liability under this law extends not only to ATM operators but also to merchants permitting such devices on their premises. Tennessee thus becomes the second U.S. state—after Indiana—to implement a comprehensive ban on cryptocurrency ATMs. Previously, cryptocurrency ATMs had been widely exploited by overseas fraudsters for financial scams; in 2025 alone, such scams caused approximately $390 million in losses, predominantly affecting elderly victims. To date, 20 U.S. states have enacted regulatory measures concerning cryptocurrency ATMs, though most adopt controls such as licensing requirements and transaction limits rather than outright prohibition.
