TechFlame News – Tennessee Governor Bill Lee has signed a bill banning cryptocurrency ATM operations statewide, making Tennessee the second state, after Indiana, to impose a full ban on such machines.

The bill (HB 2505) has taken effect and will be enforced starting July 1. Under the new law, installing or operating a "virtual currency self-service terminal" (i.e., a Bitcoin ATM) is classified as a Class A misdemeanor, punishable by up to one year in prison and a fine of $2,500. Merchants that allow these machines on their premises will also face legal liability.

Currently, most U.S. states have strengthened oversight through licensing systems and transaction caps, but outright bans remain rare. Data shows that since 2026, 30 states have introduced related legislation, with 20 states having passed laws, reflecting a continued tightening of measures against crypto ATM fraud risks.