Indiana state lawmakers are advancing House Bill 1116 to impose new rules on cryptocurrency ATMs, aiming to protect consumers from rising fraud. The bill introduces transaction limits and fee caps in response to scams that have cost residents hundreds of thousands of dollars. Supporters highlight protections for vulnerable groups, while industry representatives express concerns over business impacts.
In a bid to combat a surge in cryptocurrency-related scams, Indiana lawmakers introduced House Bill 1116 during a House Financial Institutions Committee meeting on Tuesday. The legislation targets "crypto kiosks," machines that allow users to purchase bitcoin using cash or debit cards without needing a bank account. These devices, commonly located in gas stations and convenience stores, have become popular nationwide but are increasingly linked to fraud.
Rep. Wendy McNamara (R-Evansville), the bill's author, emphasized that the measures are not meant to restrict cryptocurrency ownership but to enhance consumer safeguards. "It will establish strong guardrails that are similar to other financial services and then protect our most vulnerable," she stated.
Law enforcement officials have reported significant losses tied to these machines. Evansville financial crimes detective Nathan VanCleave testified that residents in his city alone lost around $400,000 in 2025 due to kiosk-related scams. "We are currently living in a scam-demic," VanCleave said. "…scams are just exploding, and particularly they are on steroids because of cryptocurrency."
Many victims are elderly individuals targeted through deceptive phone calls or text messages where scammers impersonate government officials or trusted businesses. Ambre Marr, state legislative director for AARP Indiana, described the typical ploy: criminals create urgency, instruct victims to withdraw cash, locate a crypto ATM, and deposit funds to buy and send cryptocurrency to a scammer-controlled wallet.
The bill proposes limiting purchases or transfers to $1,000 per 24-hour period and $10,000 per 30-day period, alongside fee caps and mandatory fraud-warning signage. If enacted, it would take effect immediately.
Representatives from the cryptocurrency industry voiced opposition to certain provisions. Michael Geiselhart, government relations manager at Bitcoin Depot, argued that a 3% fee cap on transactions would not cover operational costs. "The 3% fee cap is not necessarily a regulation for us, it’s actually more of an eviction notice," he told the committee.
The proposal reflects broader concerns over the unchecked growth of crypto kiosks and their role in facilitating scams, balancing innovation with public protection.
