Senate Banking Committee to Vote on Digital Asset Market Structure Legislation

According to Cointelegraph, the U.S. Senate Banking Committee is anticipated to vote on legislation aimed at addressing the digital asset market structure by the end of the month. Wyoming Senator Cynthia Lummis, a proponent of the bill, has highlighted the potential for the legislation to tackle fraud associated with cryptocurrency ATMs. In a recent statement, Senator Lummis, alongside New York Senator Kirsten Gillibrand, expressed their intent to address fraud cases involving Bitcoin ATMs as part of the market structure reforms. This follows a report from the Cheyenne police department, which identified 50 instances of fraud affecting seniors through crypto ATMs, amounting to losses exceeding $645,000. Currently, there is no federal law specifically targeting fraud from crypto ATMs and kiosks. The U.S. Federal Bureau of Investigation reported receiving approximately 11,000 complaints related to fraud at crypto kiosks in 2024, resulting in losses of over $246 million. The Senate Banking Committee, where Senator Lummis is a majority member, is expected to vote on a bill that aims to establish clear regulations for digital assets and cryptocurrency companies in the U.S. Lummis hopes the legislation will be enacted by 2026. The U.S. House of Representatives passed its version of the market structure, known as the CLARITY Act, in July. However, the final text did not explicitly mention ATMs, except for exchanges developing automated systems in line with industry standards. The latest Senate draft, released by Republican leadership in September, also omitted references to crypto kiosks or ATMs. The cryptocurrency industry has been closely monitoring Congress for updates on market structure since the House passed the CLARITY Act. Recently, members of Congress met with industry executives to discuss upcoming legislation, including the market structure bill and a proposal allowing the U.S. government to hold up to 1 million BTC in a national crypto reserve. Lummis’ comments suggest that the Senate's version of the market structure bill remains flexible. House Republicans have already voted to retroactively add a central bank digital currency ban to the CLARITY Act, but the final text of the Senate bill remains uncertain. Cointelegraph reached out to Lummis’ office for comment but had not received a response at the time of publication. In February, Illinois Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act to address the growing trend of crypto ATM fraud in the U.S. The bill proposed requiring ATM operators to warn consumers about scams and take steps to prevent fraud. However, it was referred to the Senate Banking Committee and did not advance to a floor vote. In the absence of comprehensive federal legislation, several U.S. states and cities have enacted their own laws to combat crypto ATM fraud. Cities like Stillwater, Minnesota, and Spokane, Washington, have banned crypto kiosks and ATMs due to increased scam activities. Meanwhile, Grosse Pointe Farms, Michigan, imposed a $1,000 daily transaction limit on crypto kiosks, despite having no crypto ATMs at the time. As of August, 13 U.S. states have passed laws restricting crypto ATM activities, including daily transaction limits, mandatory refunds for defrauded individuals, and prominent warnings on kiosks. Other measures include registration with state authorities.