Tennessee yanks 10K crypto ATMs, proving the only thing they mined was scams ⛏️

Tennessee Attorney General Jonathan Skrmetti confirmed that the state's ban on crypto ATMs is now in effect, following a federal court's decision not to block the legislation. A federal court sided with the state after CoinFlip, one of the largest crypto ATM operators, sought an injunction against the ban. Skrmetti described cryptocurrency ATMs as "tools for scammers" that "benefit fraudsters" more than citizens, adding that "the General Assembly recognized that these machines benefit fraudsters at the expense of everyday citizens, and the Court recognized the strong public interest in allowing this law to take effect while the case proceeds." Under Public Chapter 766, knowingly operating a crypto kiosk or crypto ATM in Tennessee is classified as a Class A misdemeanor.

The state moved to ban crypto ATMs in April after $4 million in scam losses, with the majority of victims identified as elderly people. CoinFlip's attempt to halt the law was rejected, allowing the ban to proceed. Beyond Tennessee, crypto ATMs have been banned in Indiana and Minnesota. While Missouri has not enacted a statewide prohibition, operators including CoinFlip have been labeled "gateways for fraud." Delaware, New Jersey, and Michigan are also exploring formal bans against the machines.

The crackdown has coincided with a record number of uninstalled crypto ATMs. According to data aggregated by Coin ATM Radar, more than 10,000 specialized crypto kiosks were uninstalled in June 2026. The United States accounted for 9,798 of the 10,230 global uninstallations, highlighting the direct correlation with ongoing state-level enforcement actions. For clarification, crypto kiosks or ATMs are purpose-built machines for transacting in assets such as $BTC.

Industry data indicates that crypto cards are gaining traction as an alternative channel for digital asset spending. These cards, issued by Mastercard, Visa, and other crypto-focused payment platforms, allow users to spend digital assets through the traditional ATM network. Crypto card volume increased 106% last year, a figure that rivals P2P stablecoin payments. The shift underscores sustained demand for crypto spending products even as crypto ATM operators face mounting regulatory pressure.