Minnesota lawmakers are weighing what would be one of the most sweeping crackdowns on cryptocurrency infrastructure in the country - a full statewide ban on Bitcoin ATMs, driven by a growing wave of scams targeting the state's most vulnerable residents.
Key Takeaways
Minnesota is considering a statewide ban on Bitcoin ATMs under HF 3642.
Lawmakers cite rising fraud, especially scams targeting seniors.
Around $540,000 in losses were reported in 2025.
Existing safeguards from 2024 are deemed ineffective.
About 350 crypto kiosks would be shut down if the bill passes.
House File 3642, introduced last week, would prohibit the placement and operation of all physical cryptocurrency kiosks across Minnesota. If passed, it would shutter roughly 350 licensed machines operated by as many as ten companies currently doing business in the state.
How the Bill Got Here
Rep. Erin Koegel (DFL) introduced HF 3642 on February 23, 2026, and the House Commerce Finance and Policy Committee took it up just days later on February 26. The bill was “laid over” — meaning it wasn’t voted on immediately but flagged for continued discussion — though it has drawn notable bipartisan support and a strong endorsement from the
Minnesota Department of Commerce.
Under the proposed timeline, operators would have a 90-day window after enactment to wind down or apply for limited exceptions.
The legislation would also repeal a regulatory framework put in place just two years ago. That 2024 law established a $2,000 daily transaction cap for new customers and a 14-day refund window — measures that regulators now say have proven inadequate. Scammers, officials argue, simply adjusted their tactics to work within those guardrails.
The Fraud Problem Driving the Push
The case for a ban rests heavily on a troubling pattern of elder fraud. In 2025 alone, Minnesota received 70 formal complaints tied to cryptocurrency kiosks, with reported losses totaling approximately $540,000. Lawmakers and law enforcement officials say those numbers almost certainly undercount the real damage.
Testimony from the Woodbury Police Department painted a stark picture: victims on fixed incomes losing as much as half their monthly earnings to scammers who directed them to these machines. The kiosks, often located in convenience stores and gas stations, are seen as particularly dangerous because transactions are fast, largely irreversible, and difficult to monitor in real time.
For supporters of the ban, the 2024 regulations offered a reasonable first attempt — but the evidence suggests the industry’s fraud problem has outpaced the policy response.
What the Ban Would and Wouldn’t Do
It’s worth being precise about the bill’s scope. HF 3642 targets physical hardware only. Minnesotans would retain full access to cryptocurrency through online exchanges and mobile applications — the ban does not touch digital platforms.
The state-level effort also follows an earlier move by St. Paul, whose city council approved its own local ban on Bitcoin ATMs in December 2025. HF 3642 would effectively extend that policy across all 87 counties.
Industry Pushback
Not everyone is on board. Groups like the Crypto ATM Operators Association have pushed back firmly, characterizing the proposed ban as regulatory overreach that penalizes a legal industry and cuts off legitimate users — particularly people without traditional bank accounts who rely on kiosks for financial access.
That argument may face an uphill battle in St. Paul. With the Department of Commerce aligned with the bill’s sponsors and bipartisan support building in the committee, the question may be less whether the ban advances and more how quickly it moves.
A hearing date for the full committee has not yet been announced.
