Key Takeaways:
Governor Bill Lee signed HB 2505 on April 23, 2026, making Tennessee the 2nd state to ban crypto ATMs. The FBI linked approximately $142 million in losses from Tennessee crypto scams in 2025, driving bipartisan support. All virtual currency kiosks in Tennessee must be removed or shut down before the July 1, 2026, effective date. House Passes 94-0 Crypto ATM Ban, Forcing Retailers to Remove Machines by July 1The law takes effect July 1, 2026, and applies to all virtual currency kiosks operating in Tennessee, including machines already installed.
Operating, installing, or allowing a kiosk on controlled property becomes a Class A misdemeanor once the law is enforced. Owners, operators, and property managers all fall within its reach. The bill provides no exceptions for existing machines or licensed financial institutions.
