Stop Crypto ATM Scams Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9268 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                                H. R. 9268

 To amend the Bank Secrecy Act to require the registration of digital
  asset kiosk operators and to require such operators to comply with
   anti-money laundering and anti-fraud requirements, and for other
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 11, 2026

Mr. Casten (for himself and Ms. Salazar) introduced the following bill;
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 To amend the Bank Secrecy Act to require the registration of digital
  asset kiosk operators and to require such operators to comply with
   anti-money laundering and anti-fraud requirements, and for other
                               purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Crypto ATM Scams Act''.

SEC. 2. REGISTRATION OF DIGITAL ASSET KIOSK OPERATORS.

    (a) In General.--Section 5330 of title 31, United States Code, is
amended--
            (1) in subsection (d)--
                    (A) in paragraph (1)(A), by inserting ``, any
                digital asset kiosk operator,'' after ``similar
                instruments''; and
                    (B) by adding at the end the following:
            ``(3) Digital asset kiosk terms.--The terms `digital asset
        kiosk' and `digital asset kiosk operator' have the meaning
        given those terms, respectively, under section 5337(a).''; and
            (2) by adding at the end the following:
    ``(f) Registration of Digital Asset Kiosk Locations.--
            ``(1) In general.--The Secretary of the Treasury shall
        require a digital asset kiosk operator--
                    ``(A) before beginning to operate a digital asset
                kiosk, to submit a list containing the physical address
                of each digital asset kiosk owned or operated by the
                digital asset kiosk operator; and
                    ``(B) not less than once every 90 days thereafter,
                to submit an update to such list.
            ``(2) Form and manner of registration.--Each submission by
        a digital asset kiosk operator pursuant to paragraph (1) shall
        include--
                    ``(A) the legal name of the digital asset kiosk
                operator;
                    ``(B) the physical address of each digital asset
                kiosk owned or operated by the digital asset kiosk
                operator that is located in the United States or the
                territories of the United States;
                    ``(C) up-to-date contact information for the
                digital asset kiosk operator's compliance officer
                described in section 5318(h)(1)(B);
                    ``(D) the start date of operation of each digital
                asset kiosk; and
                    ``(E) the end date of operation of each digital
                asset kiosk, if applicable.
            ``(3) False and incomplete information.--The filing of
        false or materially incomplete information in a submission
        required under paragraph (1) shall be deemed a failure to
        comply with the requirements of this subsection.
            ``(4) Public availability.--The Secretary of the Treasury
        shall make all information submitted under this subsection
        available to the public, including on a website of the
        Department of the Treasury.''.
    (b) Rule of Application for Existing Digital Asset Kiosk
Operators.--A person who is a digital asset kiosk operator (as defined
in section 5337(a) of title 31, United States Code) on the date of
enactment of this Act--
            (1) shall, not later than the end of the 6-month period
        beginning on the date of enactment of this Act, submit the
        initial list described in such section 5330(f)(1)(A); and
            (2) shall, not later than 90 days after the end of the 6-
        month period beginning on the date of enactment of this Act,
        submit the first update of such list.

SEC. 3. ANTI-MONEY LAUNDERING AND ANTI-FRAUD REQUIREMENTS FOR DIGITAL
              ASSET KIOSK OPERATORS.

    (a) In General.--Subchapter II of chapter 53 of title 31, United
States Code, is amended by adding at the end the following:
``Sec. 5337. Anti-money laundering and anti-fraud requirements for
              digital asset kiosk operators
    ``(a) Definitions.--In this section:
            ``(1) Charge.--The term `charge' means--
                    ``(A) fees or expenses paid by a customer; and
                    ``(B) the difference between the market price of a
                digital asset and the price of the digital asset
                charged to the customer.
            ``(2) Digital asset.--The term `digital asset' means any
        digital representation of value that is issued or transferred
        using a cryptographically secured distributed ledger,
        blockchain technology, or any other similar technology.
            ``(3) Digital asset kiosk.--The term `digital asset kiosk'
        means--
                    ``(A) an automated teller machine that facilitates
                the buying, selling, or exchange of digital assets for
                fiat currency or other digital assets; or
                    ``(B) a digital or mobile application that
                facilitates the buying, selling, or exchange of fiat
                currency for digital assets at a participating physical
                location in an organized merchant network.
            ``(4) Digital asset kiosk operator.--The term `digital
        asset kiosk operator' means a person that owns or operates a
        digital asset kiosk.
            ``(5) Digital asset wallet.--The term `digital asset
        wallet' means a software application or other mechanism that
        provides a means for holding, storing, and transferring digital
        assets.
            ``(6) Digital asset wallet address.--The term `digital
        asset wallet address' means an alphanumeric identifier that is
        associated with a digital asset wallet and represents a
        potential destination for a digital asset transfer.
            ``(7) Extended business hours.--The term `extended business
        hours' means--
                    ``(A) the hours between 8:00 a.m. and 8:00 p.m.
                local time on business days; and
                    ``(B) the hours between 9:00 a.m. and 5:00 p.m.
                local time on weekends and holidays.
            ``(8) Market price.--The term `market price' means, with
        respect to a digital asset, the current market price of a
        particular digital asset publicly quoted on a digital asset
        trading platform that is registered with the Department of the
        Treasury for a particular time.
            ``(9) New customer.--With respect to a digital asset kiosk
        operator, a person is a `new customer' of the digital asset
        kiosk operator if--
                    ``(A) the person has never previously transacted
                with the digital asset kiosk operator; or
                    ``(B) less than 14 days have elapsed since the
                person entered into their first transaction with the
                digital asset kiosk operator.
    ``(b) Anti-Money Laundering Program.--
            ``(1) In general.--A digital asset kiosk operator shall--
                    ``(A) develop, implement, and routinely update an
                anti-money laundering program described in section
                5318(h), and file a copy of such program with the
                Financial Crimes Enforcement Network;
                    ``(B) be subject to the requirement to report
                suspicious transactions described in section 5318(g);
                and
                    ``(C) be subject to the requirements described
                under this subchapter to file currency transaction
                reports.
            ``(2) Risk-based requirements.--Not later than 180 days
        after the date of enactment of this section, the Secretary of
        the Treasury shall issue rules to require a digital asset kiosk
        operator, in implementing an anti-money laundering program
        required under paragraph (1)(A), to adopt controls that are
        reasonably designed to--
                    ``(A) verify a customer's identity, including
                during any online pre-registration process and at the
                physical digital asset kiosk location;
                    ``(B) monitor for digital asset kiosk transactions
                involving a digital asset wallet directly or indirectly
                associated with any digital asset wallet address listed
                on any relevant sanctions lists through the use of
                blockchain analytics tools;
                    ``(C) assess the risks associated with and the
                likelihood of future illicit activity in connection
                with digital asset kiosk transactions through the use
                of blockchain analytics tools; and
                    ``(D) maintain restrictions that prevent more than
                one customer of such digital asset kiosk operator from
                using the same digital wallet address.
    ``(c) Limits for Digital Asset Kiosk Transactions.--
            ``(1) Daily limits for new customers.--A digital asset
        kiosk operator may not accept one or more digital asset kiosk
        transactions on behalf of a new customer that have a total
        monetary value of more than $2,000 during a 24-hour period.
            ``(2) Total limits for new customers.--A digital asset
        kiosk operator may not accept digital asset kiosk transactions
        on behalf of a new customer that have a total monetary value,
        in the aggregate, of more than $10,000.
            ``(3) Daily limits for existing customers.--With respect to
        a customer that is not a new customer, a digital asset kiosk
        operator may not accept one or more digital asset kiosk
        transactions on behalf of the customer that have a total
        monetary value of more than $7,500 during a 24-hour period.
            ``(4) Inflation adjustment.--The Secretary of the Treasury
        shall update the dollar amounts in this subsection every 5
        years to reflect the change in the Consumer Price Index for All
        Urban Consumers published by the Bureau of Labor Statistics of
        the Department of Labor.
            ``(5) Rulemaking authority.--The Secretary of the Treasury
        may issue rules to adjust the transaction limit amounts
        described under this subsection, as the Secretary determines
        are reasonably necessary to deter fraudulent activity and
        illicit finance.
    ``(d) Disclosures for Customers.--
            ``(1) In general.--A digital asset kiosk operator shall
        take reasonable steps to provide written disclosure to any
        customer prior to initiating a digital asset kiosk transaction,
        in English and in the same language principally used by the
        digital asset kiosk operator to advertise or solicit customers,
        including by displaying the disclosure in a prominent,
        conspicuous, easily readable manner, that contains the terms,
        conditions, and itemized elements of the transaction and
        contains the following:
                    ``(A) A warning written prominently in bold type
                stating the following: `Warning: Losses due to
                fraudulent or accidental transactions may not be
                recoverable and digital asset kiosk transactions are
                irreversible.'.
                    ``(B) The following statement: `Digital assets are
                not legal tender. Digital assets are not backed by the
                full faith and credit of the United States Government
                or guaranteed by the United States Government. Digital
                asset wallet accounts and digital asset balances are
                not subject to FDIC insurance or NCUA insurance.'.
                    ``(C) The amount of digital assets involved in the
                transaction and the type of digital assets involved in
                the transaction, including the ticker or symbol that is
                used to represent a digital asset.
                    ``(D) The U.S. dollar price of the digital assets
                involved in the digital asset kiosk transaction that is
                charged to the customer and the current U.S. dollar
                market price of such digital assets, as is quoted on at
                least one digital asset trading platform that is
                registered with the Department of the Treasury and is
                identified by name, at the time the disclosure is
                provided.
                    ``(E) The amount of charges collected from the
                customer by the digital asset kiosk operator, which
                shall be--
                            ``(i) displayed prominently in bold type on
                        a dedicated disclosure screen; and
                            ``(ii) presented as an itemized list that
                        separately identifies--
                                    ``(I) any fees or expenses paid by
                                the customer, expressed in United
                                States dollars and as the percentage of
                                the transaction; and
                                    ``(II) the difference, expressed in
                                United States dollars, between the
                                current market price of the digital
                                assets involved in the transaction and
                                the price of such digital assets
                                charged to the customer.
            ``(2) Guidance.--Not later than 180 days after the date of
        enactment of this section, the Secretary of the Treasury, in
        consultation with the Federal Trade Commission and the Director
        of the Bureau of Consumer Financial Protection, shall issue
        guidance to assist digital asset kiosk operators with providing
        disclosures described in paragraph (1) that are effective,
        clear and conspicuous, easily understandable, and displayed in
        a standardized format.
    ``(e) Anti-Fraud Measures.--
            ``(1) In general.--A digital asset kiosk operator shall
        take reasonable steps to detect and prevent financial fraud,
        including by taking the following steps:
                    ``(A) Providing clear scam warnings to customers
                before entering into a digital asset transaction that,
                at a minimum, address the following common fraudulent
                tactics:
                            ``(i) Payment requests to an individual the
                        customer has never met.
                            ``(ii) Initial contact via social media,
                        online dating, or other messaging applications.
                            ``(iii) Impersonation of representatives
                        from government agencies, financial
                        institutions, credit unions, or other
                        legitimate organizations or businesses.
                            ``(iv) Urgent or emergency requests.
                            ``(v) Utilizing a scannable code associated
                        with a digital asset wallet that is not owned
                        by the customer.
                    ``(B) Updating, on an annual basis, the warnings
                described in subparagraph (A), which shall be informed
                by the annual fraud alerts or notices described in
                subsection (k).
            ``(2) Anti-fraud policy.--Not later than 180 days after the
        date of enactment of this section, the Secretary of the
        Treasury shall issue rules to require a digital asset kiosk
        operator to develop, implement, and routinely update an anti-
        fraud policy that--
                    ``(A) is in writing and available for inspection by
                the Secretary of the Treasury or the Secretary's
                designee;
                    ``(B) is signed by, certified by, and accountable
                to senior management of the digital asset kiosk
                operator; and
                    ``(C) includes policies, procedures, controls, and
                monitoring mechanisms to address the fraudulent
                practices described in paragraph (1)(A).
    ``(f) Acknowledgment of Disclosures.--
            ``(1) In general.--Each time a customer uses a digital
        asset kiosk, the digital asset kiosk operator shall ensure
        acknowledgment of all disclosures required under subsection (d)
        and fraud warnings under subsection (e) via confirmation of
        consent of the customer at the digital asset kiosk.
            ``(2) Requirements for new customers.--Prior to initiating
        a digital asset kiosk transaction on behalf of a new customer,
        a digital asset kiosk operator shall obtain confirmation from
        the new customer that--
                    ``(A) the new customer has reviewed the disclosure
                of charges described in subsection (d)(1)(E); and
                    ``(B) the new customer understands the total
                charges as a percentage of the transaction amount.
            ``(3) Rule of constructions on customer remedies.--An
        acknowledgment described under this subsection shall not be
        construed to waive, nullify, or limit any right to a refund or
        other remedy available to a customer under applicable State or
        local law.
    ``(g) Receipts.--Upon completion of each digital asset kiosk
transaction, the digital asset kiosk operator shall provide the
customer with a physical or electronic receipt, which shall include the
following information:
            ``(1) The name and contact information of the digital asset
        kiosk operator, including a telephone number for a customer
        service help line.
            ``(2) The name of the customer.
            ``(3) The type, value, date, and precise time of the
        digital asset kiosk transaction, and each applicable digital
        asset wallet address.
            ``(4) The amount of United States dollars or other fiat
        currency involved in the transaction.
            ``(5) The amount, in United States dollars, of any charges
        collected by the digital asset kiosk operator in relation to
        the transaction, presented as line-items summed within the
        total transaction.
            ``(6) A statement that the customer should contact law
        enforcement if they suspect fraud or scams, including the
        contact information for the relevant local law enforcement
        agency and for applicable State and Federal law enforcement
        agencies.
            ``(7) Any additional information the digital asset kiosk
        operator determines appropriate.
    ``(h) Customer Service Help Line.--A digital asset kiosk operator
shall provide live customer service during extended business hours and
display the phone number for such service in a clear, conspicuous, and
easily readable manner upon each digital asset kiosk.
    ``(i) Refunds for Charges.--A digital asset kiosk operator shall
issue a refund for charges collected from a customer in connection with
a digital asset kiosk transaction within 30 days if--
            ``(1) the customer was fraudulently induced into engaging
        in the digital asset kiosk transaction; and
            ``(2) the customer files a complaint to the digital asset
        kiosk operator, which includes--
                    ``(A) the name, address, and phone number of the
                customer;
                    ``(B) information that establishes the type, value,
                date, and time of the digital asset kiosk transaction;
                and
                    ``(C) a copy of a report to a State or local law
                enforcement agency or a Federal or State authority made
                not later than 90 days after the digital asset kiosk
                transaction.
    ``(j) Communications With Financial Crimes Enforcement Network and
Law Enforcement.--The Secretary of the Treasury shall issue rules to
require a digital asset kiosk operator to provide the Financial Crimes
Enforcement Network and other relevant law enforcement and government
agencies with a dedicated and frequently monitored phone number and
email address to facilitate communication with the operator in the
event of reported or suspected fraudulent activity.
    ``(k) Fraud Scheme Alerts.--Not later than 9 months after the date
of enactment of this section, and for each calendar year thereafter,
the Secretary of the Treasury, in consultation with the Federal Bureau
of Investigation and the Federal Trade Commission, shall issue an alert
or notice to assist digital asset kiosk operators in--
            ``(1) identifying emerging fraud schemes involving digital
        asset kiosks; and
            ``(2) filing suspicious activity reports.
    ``(l) State Regulatory Authority.--
            ``(1) Effect on state licensing laws.--Nothing in this
        section may be construed to limit the authority of a State
        regulatory agency to require a digital asset kiosk operator to
        ensure registration, licensing, and compliance related to
        applicable State laws.
            ``(2) State-issued decals for compliant digital asset
        kiosks.--A State regulatory agency may--
                    ``(A) issue a decal or physical sign that can be
                affixed to a digital asset kiosk, in a form or manner
                determined by the State regulatory agency, to signal
                compliance with applicable State and Federal laws,
                including whether--
                            ``(i) the physical location of such digital
                        asset kiosk has been filed with the Secretary
                        of the Treasury; and
                            ``(ii) the operator of such digital asset
                        kiosk is registered with the Secretary of the
                        Treasury and has obtained the appropriate
                        licensing from the State regulatory agency;
                    ``(B) administer a process through which a digital
                asset kiosk operator is issued such decal or sign for
                affixation to the digital asset kiosk; and
                    ``(C) impose penalties for any false advertising,
                misuse of signage, or misrepresentations of regulated
                or compliant status.
            ``(3) Coordination with state regulators.--The Secretary of
        the Treasury, acting through the Financial Crimes Enforcement
        Network, may enter into agreements with State regulatory
        agencies to facilitate the supervision of digital asset kiosk
        operators and enhance compliance with Federal standards,
        including agreements relating to the coordination of
        examinations and the sharing of supervisory information for the
        purposes of enforcing applicable Federal standards.
            ``(4) Effect on state law.--This section--
                    ``(A) shall supersede any applicable State or local
                law with respect to restrictions or requirements
                established after the effective date of this section on
                the total monetary value that any customer may exchange
                in one or multiple digital asset kiosk transactions
                within a defined time period;
                    ``(B) may not be construed to limit the authority
                of a State regulatory agency or local authority to
                impose other requirements in order to protect consumers
                or prevent fraudulent or money laundering activity;
                    ``(C) may not be construed to permit a digital
                asset kiosk operator to operate or otherwise conduct
                business in a State without obtaining the appropriate
                licensing from the applicable State regulatory agency
                and complying with other applicable State laws; and
                    ``(D) subject to subparagraph (A), may not be
                construed as altering, limiting, or affecting the
                authority of a State attorney general or any State
                regulatory agency to bring an enforcement action or
                other regulatory proceeding arising solely under the
                law in effect in that State.''.
    (b) Effective Date.--Section 5337 of title 31, United States Code,
shall take effect at the end of the 180-day period beginning on the
date of enactment of this Act.
    (c) Clerical Amendment.--The table of sections for chapter 53 of
title 31, United States Code, is amended by inserting after the item
relating to section 5336 the following:

``5337. Anti-money laundering and anti-fraud requirements for digital
                            asset kiosk operators.''.
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