Texans lost more money to cryptocurrency-kiosk scams in 2025 than residents of any other state. The loss total surfaces a year after a bipartisan bill to regulate cash-to-crypto machines passed the Texas Senate but died without a vote in the House.
The new data, paired with a state Senate committee’s decision to review the issue, raises a question regarding whether the terminals should be subject to state oversight. Roughly 4,000 virtual-currency kiosks currently operate across Texas.
In a supplement to its annual report published on May 15, 2026, the FBI’s Internet Crime Complaint Center reported that Texans filed 1,179 complaints involving cryptocurrency kiosks last year, resulting in losses of $56.8 million. This was the highest dollar total of any state, finishing ahead of Florida’s $32.8 million and California’s $24 million. Nationally, the center logged more than 13,400 complaints and $389 million in losses, representing a 23% increase in complaints and a 58% jump in total losses from 2024.
People older than 50 filed more than half of the national complaints, accounting for $302 million in losses. The FBI stated that criminals frequently instruct victims by phone to withdraw cash from a bank, locate a kiosk, and deposit the money by scanning a QR code. Fraudsters often carry out these scams by posing as government officials, law enforcement officers, or relatives.
Texas has no statute specifically written for cryptocurrency kiosks. Senate Bill 1705, introduced by Senator Tan Parker, R-Flower Mound, would have required kiosk operators to register machines with the Texas Department of Banking, file quarterly reports, post risk disclosures, and adopt fraud-prevention measures. The bill also proposed a $3,000 daily transaction limit and a 72-hour hold on first-time customers.
The bill cleared the Senate on May 15, 2025, on a 27–4 vote, and a House committee reported it favorably without amendment. It was placed on the House’s General State Calendar on May 27 but never received a floor vote before the regular session ended on June 2, leaving the measure dead. Texas Policy Research opposed the bill, arguing that it expanded the administrative state, burdened small operators, and allowed law enforcement to obtain transaction data without a subpoena.
The Senate Committee on Business and Commerce returned to the issue during an interim hearing. The panel was directed to examine the prevalence of virtual-currency kiosks and recommend ways to protect consumers from scams while supporting financial technology innovation.
Other states have moved faster than Texas to regulate these machines. California, Vermont, and Minnesota have enacted kiosk-specific consumer protections, including daily transaction caps and mandatory refunds for defrauded first-time users. The number of crypto ATMs in Texas has quadrupled over five years to nearly 4,000.
The committee is expected to include its findings in an interim report to the 90th Legislature, which convenes in January 2027. This will set up a renewed debate over whether to revive registration and transaction limits or pursue a different regulatory path. Until then, the machines remain in service, and the disclosures outlined in the defeated bill are not legally required.