Senate Targets Crypto ATM Fraud as Losses Pass $245M

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What exactly is the $645K crypto ATM fraud that Senator Lummis is targeting?

How are lawmakers addressing broader crypto fraud and market reform?

Why is crypto ATM security becoming a central issue in financial reforms?

Senate Targets Crypto ATM Fraud as Losses Pass $245M — Image source: Unblock Media

Senator Cynthia Lummis highlights a new legislative effort to combat cryptocurrency ATM-related fraud.
The proposed Senate market structure bill aims to tackle an issue costing victims millions annually.

On September 23, 2025, Cointelegraph reported that Senator Cynthia Lummis stated the forthcoming Senate bill on digital asset market structure could help address cryptocurrency ATM fraud, which has resulted in significant monetary losses. Her comments came in response to a report by the Cheyenne police department documenting 50 cases of fraud linked to crypto ATMs, with losses exceeding $645,000. Most victims were elderly individuals targeted by scammers.

The push for federal regulations has gained urgency following the FBI’s report of 11,000 complaints of fraud involving crypto kiosks in 2024, which collectively led to approximately $246 million in losses. Senator Lummis, a member of the Senate Banking Committee, noted she and Senator Kirsten Gillibrand are working to ensure the market structure bill incorporates measures to address fraudulent activities. The committee is expected to vote on the bill by the end of September 2025, with Lummis anticipating its enactment into law by 2026.

Currently, cryptocurrency ATMs operate without specific federal oversight for fraud prevention. While the House of Representatives passed the CLARITY Act—a separate market structure bill—earlier this year, it did not directly address crypto ATM fraud. Similarly, the latest draft of the Senate's market structure bill, released in September, does not explicitly mention such machines.

Previous attempts to regulate this issue federally, such as the Crypto ATM Fraud Prevention Act introduced by Senator Dick Durbin in February, failed to advance to a floor vote. In the absence of federal measures, states and cities have implemented their own regulations to curb fraud. Actions include banning cryptocurrency kiosks or limiting daily transaction amounts.

As of September 24, 2025, 00:09 UTC, Bitcoin (BTC) is trading at $111,915.396, with a 0.651% decrease in 24-hour trading volume, according to CoinMarketCap.