U.S. States Ramp Up Crypto ATM Bans with Tennessee Leading Crackdown

U.S. states are intensifying crackdowns on cryptocurrency ATMs, highlighted by Tennessee's House Bill 2505, signed April 13 and effective July 1, which outlaws Bitcoin kiosks as a Class A misdemeanor. Following Indiana's March ban, Minnesota proposes Senate File 3868 with $2,000 daily limits for new clients and 72-hour fraud reimbursements. Regulators cite exploding scams, including FBI data on $240 million of $333 million H1 2025 losses and $257 million last year targeting seniors over 60. These actions raise regulatory hurdles for Bitcoin's retail on-ramps, potentially curbing cash inflows and adoption amid a March Bitcoin Depot hack stealing 50.9 BTC ($3.665M).