Crypto ATM operator CoinFlip has taken another hit in Tennessee. In a recent statement, Tennessee Attorney General Jonathan Skrmetti confirmed that the ban on crypto ATMs will go into effect.
The move follows an attempt by CoinFlip and the broader crypto ATM industry to block the ban after the federal court sided with Tennessee. According to AG Skrmetti, cryptocurrency ATMs are “tools for fraudsters” and “benefit fraudsters” rather than citizens.
The General Assembly recognized that these machines benefit fraudsters at the expense of ordinary citizens, and the Court recognized that it is in the strong public interest to allow this law to take effect while litigation is ongoing.
According to Tennessee law, Public Chapter 766 It classifies knowingly operating crypto kiosks or crypto ATMs as a Class A misdemeanor.
Will the crackdown on crypto ATMs impact adoption?
State moves to ban crypto ATMs in April $4 million fraud lossIt mostly targets older people. However, CoinFlip, one of the largest operators, took action to prevent the ban. However, the request for a preliminary injunction was rejected by the federal court, allowing the ban to go into effect.
In addition to Tennessee, crypto ATMs are also banned in Indiana and Minnesota. While Missouri hasn’t formalized a statewide ban, operators like CoinFlip’fraud gateways.’
Other states such as Delaware, New Jersey and Michigan are also exploring formal bans on crypto ATMs.
In fact, the number of crypto ATMs removed amid this crackdown reached a record high in June 2026. According to data collected by CoinATM Radar, more than 10 thousand private crypto kiosks have been removed.
The US accounted for 9,798 of the 10,230 crypto ATMs removed globally, underscoring a close correlation with ongoing state crackdowns.
Will crypto cards replace crypto ATMs?
However, this may not negatively impact broader adoption across the US as crypto cards emerge as a safer alternative for crypto spending. To explain, crypto kiosks or ATMs are built specifically for crypto or BTC.
On the contrary, crypto cards issued by Mastercard, Visa and other crypto-focused payment platforms allow users to spend their digital assets through the traditional ATM network.
Actually crypto card volume augmented Last year, 106% rival P2P stablecoin payments emerged, further underlining demand.
Overall, the ongoing crypto ATM crackdown amid rising scams may not impact cryptocurrency adoption. Instead, it could help users adopt relatively safer alternatives such as crypto cards.
Final Summary
- Tennessee gets green light from federal court to proceed with crypto ATM ban
- Crypto card usage booms as crackdown on crypto ATMs leads to record removals across US
