State Representative Russell Bedsole has introduced House Bill 303 to regulate cryptocurrency ATMs and protect Alabamians from fraud. The legislation responds to a surge in scams that have cost residents hundreds of thousands of dollars. If enacted, it would impose limits similar to those on traditional bank ATMs.
In response to rising cryptocurrency fraud, Alabama State Representative Russell Bedsole, who also serves as a captain in the Shelby County Sheriff's Department, filed House Bill 303. The bill aims to regulate cryptocurrency ATMs commonly found at convenience stores, which have been exploited in various scams, including fake jury duty notices and romance schemes.
The Alabama Securities Commission in Montgomery has reported a near doubling of fraud complaints this year compared to the previous one. Director Amanda Senn highlighted the severity: “We hope the legislation will help mitigate the staggering number of cases and complaints we’re seeing. We’re losing millions of dollars in fraud schemes.” Specific cases include a Huntsville woman who lost more than $330,000 and a retired veteran in Enterprise who lost $250,000. Bedsole, moved by victims' experiences, recalled: “If you could have seen the look on her face,” referring to the Huntsville resident. One victim told him: “I will not be able to make my house payments.”
Under the proposed measure, cryptocurrency ATMs would face regulations akin to bank ATMs, such as daily transaction limits. Bedsole explained: “We are going to attempt to regulate these devices, very similarly the same way at bank ATM machine is regulated. This will protect hard-working Alabamians who have realized they’ll never get that money back.” Penalties for scammers remain under discussion with lawmakers and ATM manufacturers.
The bill enjoys full support from the Securities Commission and is expected to garner bipartisan backing, along with approval from Governor Kay Ivey. It is slated for committee review soon and a floor vote in February.
