Summary#
This bill adds rules for people and companies that own or run digital asset kiosks (often called crypto ATMs). It requires kiosk operators to register the physical address of each kiosk with the Department of the Treasury and update that list at least every 90 days. The bill defines key terms and creates a new set of anti-money laundering (AML) and anti-fraud rules for kiosk operators.
Key provisions include:
- Registration: Operators must give the legal name, kiosk addresses, compliance officer contact, and start/end dates for each kiosk. Treasury must publish the information for the public.
- AML requirements: Operators must file an AML program with the Financial Crimes Enforcement Network (FinCEN), report suspicious activity, and file currency transaction reports. Treasury must issue rules requiring identity checks, blockchain analytics for sanctions and risk monitoring, and limits on multiple customers using the same wallet address.
- Transaction limits: New customers are limited to $2,000 in transactions per day and $10,000 total aggregate. Existing customers are limited to $7,500 per day. Treasury will adjust dollar amounts for inflation every 5 years and can change limits by rule to deter fraud.
- Customer disclosures: Operators must show clear, written disclosures before a transaction. Disclosures must include a prominent warning that digital asset transactions are irreversible, a statement that digital assets are not legal tender or FDIC/NCUA insured, the type and amount of digital assets, the U.S. dollar price charged and a quoted market price from a registered trading platform, and itemized charges and fees.
- Anti-fraud measures: Operators must show scam warnings that list common fraud tactics and update them annually. Treasury must require operators to have a written anti-fraud policy signed by senior management.
- Acknowledgment and receipts: Customers must confirm they saw disclosures before each transaction. Operators must give a physical or electronic receipt with operator contact, customer name, transaction details, wallet addresses, dollar amounts, itemized charges, and law enforcement contact info.
- Customer service and refunds: Operators must provide live customer service during extended business hours and display the phone number at kiosks. Operators must issue refunds of charges within 30 days if a customer was fraudulently induced and files a complaint plus a law enforcement report within 90 days.
- Communications and alerts: Operators must provide a monitored phone and email for law enforcement contact. Treasury, with the FBI and FTC, will issue annual fraud alerts for kiosk operators.
- State roles: States may still require registration and licensing, issue compliance decals for kiosks, and enforce state laws. The federal transaction limits in this bill override state or local limits created after the bill’s effective date. Treasury may coordinate with state regulators.
- Timing: The new section takes effect 180 days after enactment. Existing kiosk operators must submit initial registrations within 6 months after enactment and the first update 90 days after that.
What it means for you#
If you operate digital asset kiosks:
- You must register each kiosk location with Treasury and keep the list current.
- You must create and file an AML program with FinCEN, watch for suspicious activity, and follow Treasury rules for identity checks and blockchain screening.
- You must show clear warnings and an itemized fee breakdown before each sale. New customers will face lower transaction limits than returning customers.
- You must provide receipts, a live help phone line during extended hours, and an anti-fraud policy signed by senior management.
- You may have to issue refunds when a customer proves they were fraudulently induced, if they meet the complaint and reporting requirements.
If you use a kiosk as a customer:
- You will see prominent warnings that transactions are irreversible and that digital assets are not FDIC or NCUA insured.
- You should get an itemized receipt and be able to contact a live help line during extended hours.
- Transaction size limits will apply, especially for new customers.
If you are a state regulator or official:
- You can continue to require state licensing and may issue decals that show kiosk compliance.
- The federal transaction limits in this bill override state or local limits created after the bill takes effect, but states keep other consumer protection and licensing powers.
Expenses#
No publicly available information on costs or budget effects is included in the bill text or provided metadata.
Proponents' View#
No publicly available information.
Opponents' View#
No publicly available information.