Tennessee Governor Bill Lee has signed a bill banning cryptocurrency ATMs statewide, making Tennessee the second state after Indiana to implement a complete ban. The bill (HB 2505) has officially taken effect and will be enforced on July 1st. Under the regulations, installing or operating a "virtual currency self-service terminal" (i.e., a Bitcoin ATM) will be considered a Class A misdemeanor, punishable by up to one year in jail and a $2,500 fine. Merchants who allow such equipment to operate will also face legal liability. Currently, most states in the US have strengthened regulations through licensing systems and transaction limits, but complete bans remain rare. Data shows that since 2026, 30 states have proposed related legislation, with 20 of them having passed laws, demonstrating a continued tightening of controls on the risks of cryptocurrency ATM fraud.