S. 710Senate119th Congress (2025-2027)In Committee

Crypto ATM Fraud Prevention Act of 2025

Introduced February 25, 2025

AI-Generated Summary

Updated November 24, 2025 at 2:29 AM UTC

The Crypto ATM Fraud Prevention Act of 2025 amends Title 31 to tighten oversight of virtual‑currency kiosks (crypto ATMs). It requires operators to regularly register kiosk locations, disclose transaction terms, provide detailed receipts, and adopt anti‑fraud policies overseen by a compliance officer. The bill adds consumer‑protective steps such as mandatory fraud warnings, verbal confirmation for larger new‑customer transactions, transaction limits, and a clear refund process, while imposing civil penalties for non‑compliance.

Key Provisions

  • Virtual‑currency ATM operators must register each kiosk’s physical address with the Treasury every 90 days and keep the information current.
  • New definitions are added for terms such as virtual currency, kiosk, customer, blockchain analytics, and anti‑fraud policy.
  • Before a transaction, operators must display clear disclosures about fees, finality, and common fraud schemes, and obtain the customer’s acknowledgment.
  • Operators must give a detailed physical receipt (or electronic copy) for every transaction, including the kiosk’s contact info, transaction hash, fees, and refund rights.
  • Each operator must create a written anti‑fraud policy, submit it to FinCEN within 90 days, and appoint a full‑time compliance officer who is not the CEO and does not own >20% of the company.
  • Operators must use blockchain analytics to block transfers to known fraudulent wallets and may be asked by FinCEN for proof of compliance.
  • For new customers, any transaction of $500 or more requires a live verbal confirmation via phone or video that the customer understands and is not being fraudulently induced.
  • Refunds must be issued within 30 days for fraud‑induced transactions (full amount for new customers, fees only for existing customers), with triple damages or $10,000 minimum for willful denial.
  • Transaction limits for new customers: $2,000 (or equivalent) per 24‑hour period and $10,000 total.
  • Operators must provide a 24/7 live helpline and a dedicated law‑enforcement contact, reporting these details to FinCEN within 90 days.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S1347-1348; text: CR S1348-1350)

February 25, 2025

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SenateIntro Referral

Introduced in Senate

February 25, 2025

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S1347-1348; text: CR S1348-1350)

February 25, 2025

Floor Debate

7 members

What members said about S. 710 on the floor

3 Republicans4 Democrats
Charles E. Schumer
Sen. Charles E. SchumerD-NY · Feb 25, 2025

Mr. President, over the last month, it has become clear how Donald Trump and Republicans govern. Donald Trump and Republicans have focused on things most Americans don't care about or don't like…

John Barrasso
Sen. John BarrassoR-WY · Feb 25, 2025

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I have just come to the floor, having listened to the minority leader, the Democratic Senator…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Feb 25, 2025

Mr. President, now on a totally different subject, I would like to tell you about one of my constituents. He is a man from New Lenox, IL, in the suburbs of Chicago. Late last year, he received an…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Feb 25, 2025

Mr. President, now on a totally different subject, I would like to tell you about one of my constituents. He is a man from New Lenox, IL, in the suburbs of Chicago. Late last year, he received an…

Jack Reed
Sen. Jack ReedD-RI · Feb 25, 2025

Mr. President, today, I am joining Senator Capito to introduce the Innovation in Pediatric Drugs Act of 2025 in order to improve access to needed therapies for children. Children are not just small…

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Richard J. Durbin
Sen. Richard J. DurbinD-IL · Feb 25, 2025

Mr. President, did you see over the weekend Elon Musk, the richest man in the world, dancing on a stage with a chain saw? Did you see that? Most Americans did. That was his approach to DOGE…

Alex Padilla
Sen. Alex PadillaD-CA · Feb 25, 2025

Mr. President, I rise today to introduce the Empowering and Enforcing Environmental Justice Act of 2025. This bill would establish in statute the Office of Environmental Justice within the…

John Thune
Sen. John ThuneR-SD · Feb 25, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Markwayne Mullin
Sen. Markwayne MullinR-OK · Feb 25, 2025

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Bill Text

Latest available legislative text

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Introduced in SenateIssued February 25, 2025

II

119th CONGRESS

1st Session

S. 710

IN THE SENATE OF THE UNITED STATES

February 25, 2025

Mr. Durbin (for himself, Mr. Blumenthal, Mr. Reed, and Mr. Welch) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend title 31, United States Code, to prevent fraudulent transactions at virtual currency kiosks, and for other purposes.

1.

Short title

This Act may be cited as the Crypto ATM Fraud Prevention Act of 2025.

2.

Registration with the Secretary of the Treasury

Section 5330 of title 31, United States Code, is amended—

(1)

in subsection (d)—

(A)

in paragraph (1)(A), by inserting , any person who owns, operates, or manages a virtual currency kiosk in the United States or its territories, after similar instruments; and

(B)

by adding at the end the following:

(3)

Virtual currency; virtual currency address; virtual currency kiosk; virtual currency kiosk operator

The terms virtual currency, virtual currency address, virtual currency kiosk, and virtual currency kiosk operator have the meanings given those terms, respectively, in section 5337.

; and

(2)

by adding at the end the following:

(f)

Registration of virtual currency kiosk locations

(1)

In general

Not later than 90 days after the effective date of this subsection, and not less than once every 90 days thereafter, the Secretary of the Treasury shall require virtual currency kiosk operators to submit an updated list containing the physical address of each virtual currency kiosk owned or operated by the virtual currency kiosk operator.

(2)

Form and manner of registration

Each submission by a virtual currency kiosk operator pursuant to paragraph (1) shall include—

(A)

the legal name of the virtual currency kiosk operator;

(B)

any fictitious or trade name of the virtual currency kiosk operator;

(C)

the physical address of each virtual currency kiosk owned, operated, or managed by the virtual currency kiosk operator that is located in the United States or the territories of the United States;

(D)

the start date of operation of each virtual currency kiosk;

(E)

the end date of operation of each virtual currency kiosk, if applicable; and

(F)

each virtual currency address used by the virtual currency kiosk operator.

(3)

False and incomplete information

The filing of false or materially incomplete information in a submission required under paragraph (1) shall be deemed a failure to comply with the requirements of this subsection.

.

3.

Preventing fraudulent transactions at virtual currency kiosks

(a)

In general

Subchapter II of Chapter 53 of Title 31, United States Code, is amended by adding at the end the following:

5337.

Virtual currency kiosk fraud prevention

(a)

Definitions

In this section:

(1)

Blockchain analytics

The term blockchain analytics means the analysis of data from blockchains or public distributed ledgers, and associated transaction information, to provide risk-specific information about virtual currency transactions and virtual currency addresses.

(2)

Customer

The term customer means any person that purchases or sells virtual currency through a virtual currency kiosk.

(3)

Existing customer

The term existing customer means a customer other than a new customer.

(4)

FinCEN

The term FinCEN means the Financial Crimes Enforcement Network of the Department of the Treasury.

(5)

New customer

The term new customer, with respect to a virtual currency kiosk operator, means a customer during the 14-day period beginning on the date of the first virtual currency kiosk transaction of the customer with the virtual currency kiosk operator.

(6)

Transaction hash

The term transaction hash means a unique identifier made up of a string of characters that act as a record of and provide proof that a transaction was verified and added to the blockchain.

(7)

Virtual currency

The term virtual currency means any digital representation of value that is recorded on a cryptographically secured distributed ledger or any similar technology or another implementation, which was designed and built as part of a system to leverage or replace blockchain, distributed ledger technology, or their derivatives.

(8)

Virtual currency address

The term virtual currency address means an alphanumeric identifier associated with a virtual currency wallet identifying the location to which virtual currency purchased through a virtual currency kiosk can be sent or from which virtual currency sold through a virtual currency kiosk can be accessed.

(9)

Virtual currency kiosk

The term virtual currency kiosk means a stand-alone machine that is capable of accepting or dispensing legal tender in exchange for virtual currency.

(10)

Virtual currency kiosk operator

The term virtual currency kiosk operator means a person who owns, operates, or manages a virtual currency kiosk located in the United States or its territories.

(11)

Virtual currency kiosk transaction

The term virtual currency kiosk transaction means the purchase or sale of virtual currency via a virtual currency kiosk.

(12)

Virtual currency wallet

The term virtual currency wallet means a software application or other mechanism providing a means for holding, storing, and transferring virtual currency.

(b)

Disclosures

Before entering into a virtual currency transaction with a customer, a virtual currency kiosk operator shall disclose in a clear, conspicuous, and easily readable manner—

(1)

all relevant terms and conditions of the virtual currency kiosk transaction, including—

(A)

the amount of the virtual currency kiosk transaction;

(B)

the type and nature of the virtual currency kiosk transaction;

(C)

a warning that the virtual currency kiosk transaction is final, is not refundable, and may not be reversed; and

(D)

the type and amount of any fees or other expenses paid by the customer;

(2)

a warning relating to consumer fraud including—

(A)

a warning that consumer fraud often starts with contact from a stranger, and that the customer should never send money to someone they do not know;

(B)

a warning about the most common types of fraudulent schemes involving virtual currency kiosks, such as—

(i)

impersonation of a government official or a bank representative;

(ii)

threats of jail time or financial penalties;

(iii)

offers of a job or reward in exchange for payment, or offers of deals that seem too good to be true;

(iv)

claims of a frozen bank account or credit card; or

(v)

requests for donations to charity or disaster relief; and

(C)

a statement that the customer should contact the virtual currency kiosk operator’s customer service helpline or State or local law enforcement if they suspect fraudulent activity.

(c)

Acknowledgment of disclosures

Each time a customer uses a virtual currency kiosk, the virtual currency kiosk operator shall ensure acknowledgment of all disclosures required under subsection (b) via confirmation of consent of the customer at the virtual currency kiosk.

(d)

Receipts

Upon completion of each virtual currency kiosk transaction, the virtual currency kiosk operator shall provide the customer with a receipt, which shall include the following information:

(1)

The name and contact information of the virtual currency kiosk operator, including a telephone number for a customer service helpline.

(2)

The name of the customer.

(3)

The type, value, date, and precise time of the virtual currency kiosk transaction, transaction hash, and each applicable virtual currency address.

(4)

The amount of the virtual currency kiosk transaction expressed in United States dollars.

(5)

All fees charged.

(6)

A statement that the customer may be entitled by law to a refund if the customer reports fraudulent activity in conjunction with the virtual currency kiosk transaction not later than 30 days after the date of the virtual currency kiosk transaction.

(7)

The refund policy of the virtual currency kiosk operator or a Uniform Resource Locator where the refund policy of the virtual currency kiosk operator can be found.

(8)

A statement that the customer should contact law enforcement if they suspect fraudulent activity, such as scams, including contact information for a relevant law enforcement or government agency.

(9)

Any additional information the virtual currency kiosk operator determines appropriate.

(e)

Physical receipts required

Not later than 1 year after the effective date of this section, each receipt required under subsection (d) shall be issued to the customer as a physical receipt at the virtual currency kiosk at the time of the virtual currency kiosk transaction, but such receipt may also be provided in additional forms or communications.

(f)

Anti-Fraud policy

(1)

In general

Each virtual currency kiosk operator shall take reasonable steps to detect and prevent fraud, including establishing and maintaining a written anti-fraud policy that includes—

(A)

the identification and assessment of fraud-related risk areas;

(B)

procedures and controls to protect against risks identified under subparagraph (A);

(C)

allocation of responsibility for monitoring the risks identified under subparagraph (A); and

(D)

procedures for the periodic evaluation and revision of the anti-fraud procedures, controls, and monitoring mechanisms under subparagraphs (B) and (C).

(2)

Submission of anti-fraud policy to FinCEN

Each virtual currency kiosk operator shall submit to FinCEN the anti-fraud policy required under paragraph (1) not later than 90 days after the later of—

(A)

the effective date of this section; or

(B)

the date on which the virtual currency kiosk operator begins operating.

(g)

Appointment of compliance officer

Each virtual currency kiosk operator shall designate and employ a compliance officer who—

(1)

is qualified to coordinate and monitor compliance with this section and all other applicable Federal and State laws, rules, and regulations;

(2)

is employed full-time by the virtual currency kiosk operator;

(3)

is not the chief executive officer of the virtual currency kiosk operator; and

(4)

does not own or control more than 20 percent of any interest in the virtual currency kiosk operator.

(h)

Use of blockchain analytics

(1)

In general

Each virtual currency kiosk operator shall use blockchain analytics to prevent sending virtual currency to a virtual currency wallet known to be affiliated with fraudulent activity at the time of a virtual currency kiosk transaction and to detect transaction patterns indicative of fraud or other illicit activities.

(2)

Compliance

The Director of FinCEN may request evidence from any virtual currency kiosk operator to confirm compliance with this subsection.

(i)

Verbal confirmation required before new customer transactions

(1)

In general

Before entering into a virtual currency kiosk transaction valued at 500 dollars or more with a new customer, a virtual currency kiosk operator shall obtain verbal confirmation from the new customer that—

(A)

the new customer wishes to proceed with the virtual currency kiosk transaction;

(B)

the new customer understands the nature of the virtual currency kiosk transaction; and

(C)

the new customer is not being fraudulently induced to engage in the transaction.

(2)

Reasonable effort

A virtual currency kiosk operator shall make a reasonable effort to determine whether the customer is being fraudulently induced to engage in the virtual currency kiosk transaction.

(3)

Method of confirmation

Each verbal confirmation required under paragraph (1) shall be given by way of a live telephone or video call to a person employed by, or on behalf of, the virtual currency kiosk operator.

(j)

Refunds

(1)

In general

(A)

New customers

Not later than 30 days after receiving an application under paragraph (2), a virtual currency kiosk operator shall issue a refund to a customer for the full amount of each virtual currency kiosk transaction, including the dollar value of virtual currency exchanged and all transaction fees, made during the period in which the customer was a new customer and for which the customer was fraudulently induced to engage in the virtual currency kiosk transaction.

(B)

Existing customers

Not later than 30 days after receiving an application under paragraph (2), a virtual currency kiosk operator shall issue a refund to a customer for the full amount of all transaction fees associated with each virtual currency kiosk transaction made during the period in which the customer was an existing customer and for which the customer was fraudulently induced to engage in the virtual currency kiosk transaction.

(2)

Application

A customer seeking a refund under paragraph (1) shall, not later than 30 days after the date of the virtual currency kiosk transaction, submit an application to the virtual currency kiosk operator that includes the following:

(A)

The name, address, and phone number of the customer.

(B)

The transaction hash of the virtual currency kiosk transaction or information sufficient to determine the type, value, date, and time of the virtual currency kiosk transaction.

(C)

A copy of a report to a State or local law enforcement or government agency, made not later than 30 days after the virtual currency kiosk transaction, that includes a sworn affidavit attesting that the customer was fraudulently induced to engage in the virtual currency kiosk transaction.

(3)

Enhanced damages

Any person who willfully denies a refund to a customer in violation of paragraph (1) shall be liable to the customer for 3 times the amount of the refund owed under that paragraph or $10,000, whichever is greater. A penalty under this paragraph shall be in addition to any penalty under subsection (n).

(k)

Transaction limits with respect to new customers

(1)

In a 24-hour period

A virtual currency kiosk operator shall not accept more than $2,000, or the equivalent amount in virtual currency, from any new customer during any 24-hour period.

(2)

Total

A virtual currency kiosk operator shall not accept a total of more than $10,000, or the equivalent amount in virtual currency, from any new customer.

(l)

Customer service helpline

Each virtual currency kiosk operator shall provide live customer service during all hours that the virtual currency kiosk operator accepts virtual currency kiosk transactions, the phone number for which is regularly monitored and displayed in a clear, conspicuous, and easily readable manner upon each virtual currency kiosk.

(m)

Communications with law enforcement

(1)

In general

Each virtual currency kiosk operator shall provide a dedicated and frequently monitored phone number and email address for relevant law enforcement and government agencies to facilitate communication with the virtual currency kiosk operator in the event of reported or suspected fraudulent activity.

(2)

Submission

Not later than 90 days after the effective date of this section, each virtual currency kiosk operator shall submit the phone number and email address described in paragraph (1) to FinCEN and all other relevant law enforcement and government agencies.

(n)

Civil penalties

(1)

In general

Any person who fails to comply with any requirement of this section, or any regulation prescribed under this section, shall be liable to the United States for a civil monetary penalty of $10,000 for each such violation.

(2)

Continuing violation

Each day that a violation described in paragraph (1) continues shall constitute a separate violation for purposes of such paragraph.

(3)

Assessments

Any penalty imposed under this section shall be assessed and collected by the Secretary of the Treasury as provided in section 5321 and any such assessment shall be subject to the provisions of that section.

(o)

Relationship to State laws

The provisions of this section shall preempt any State law, rule, or regulation only to the extent that such State law, rule, or regulation conflicts with a provision of this section. Nothing in this section shall be construed to prohibit a State from enacting a law, rule, or regulation that provides greater protection to customers than the protection provided by the provisions of this section.

.

(b)

Clerical amendment

The table of sections for chapter 53 of title 31, United States Code, is amended by inserting after the item relating to section 5336 the following:

5337. Virtual currency kiosk fraud prevention.

.

4.

Effective date

The amendments made by this Act shall take effect 90 days after the date of enactment of this Act.