The bill's sponsors framed the ban as necessary consumer protection against “predatory” practices.
Representative Cyndie Romer, Chair of the House Technology & Telecommunications Committee and sponsor of the legislation, argued that "these kiosks reduce digital currency to a predatory cash grab," highlighting the stark fee disparities between crypto ATMs and traditional exchanges.
"Regular crypto traders generally do not use crypto ATMs due to their much higher fees, which can be upwards of 20% of the value of the transaction, versus the 0.4% to 1% in fees for online exchanges,” Romer said, adding that, “There is no reason to support a business structure that enables scammers to extort money from our most vulnerable populations."
Senator Spiros Mantzavinos, the Senate sponsor, described the ban as a “responsible measure,” in the face of crypto ATM-enabled fraud, adding that, "As cryptocurrency becomes more prevalent in our society, we must work to properly regulate this new digital asset market."
Law enforcement data underscores the scale of crypto ATM fraud cited by lawmakers.
Delaware Attorney General Kathy Jennings characterized the machines as deceptively benign. "To the average Delawarean, crypto kiosks may seem like mundane or quirky gas station novelties—but to scammers they are tailor-made to defraud consumers," she said, describing them as “obsolete for legitimate investors and ripe for abuse against everyone else."
AARP’s Delaware State Director Lucretia Young highlighted the disproportionate targeting of elders in fraud and scams leveraging Bitcoin ATMs. “Many Delawareans who were convinced by scammers that they needed to move their money to protect their savings, help a loved one, or resolve a fake emergency have deposited money into these kiosks,” she said, adding that losses to crypt scams are often unrecoverable.
House Bill 441 now heads to the Delaware Senate for consideration. If passed, the state would join a growing coalition implementing comprehensive crypto ATM restrictions as fraud losses mount nationwide. The legislation would require all existing machines to cease operations immediately upon enactment, with physical removal mandated within 90 days.
