Tennessee bans crypto ATMs that have become 'payment portal of choice for scammers' — second state to restrict machines after Indiana

Tennessee Gov. Bill Lee signed a law banning cryptocurrency ATMs starting July 1, 2026.

The move follows federal fraud warnings, rising scam losses, and enforcement actions against ATM operators.

Tennessee becomes the second state, after Indiana, to impose a blanket crypto ATM ban.

Officials say the goal is to stop scammers from quickly draining money from victims through these machines.