Minnesota House Approves Sweeping Commerce Bill Banning Cryptocurrency Kiosks Amid Scam Surge

By Perplexity News Staff | Published April 24, 2026

In a decisive move to combat rising cryptocurrency scams, the Minnesota House of Representatives has passed an omnibus commerce policy bill that includes a statewide ban on virtual currency kiosks. The measure, HF4188, cleared the House on Thursday with a resounding 122-12 vote and now heads to the Senate for reconciliation.

Legislation Targets Scam-Plagued Kiosks

The ban requires all physical cryptocurrency kiosks—ATM-like machines found in gas stations and convenience stores—to be removed from Minnesota by the end of the year. Operators conducting transactions solely through kiosks must also redeem any virtual currency owed to customers by December 31. While the prohibition applies only to physical devices, online cryptocurrency transactions remain unaffected.[1][3]

Rep. Erin Koegel (DFL-Spring Lake Park), the bill’s sponsor, emphasized the kiosks’ role in fraud during floor debate. “These machines are widely used to scam people and they charge high fees and lack transparency. So if a product is being used to scam people, we will step in and stop it,” Koegel stated.[3]

Law Enforcement Drives Push for Ban

Minnesota law enforcement agencies have reported a surge in scams involving these kiosks, where victims use cash or debit cards to buy cryptocurrency that is then directed to scammers’ digital wallets. Testimony in February highlighted the issue, with state commerce officials noting that a 2024 law aimed at regulating kiosks failed as fraudsters exploited loopholes.[1][3]

An Iowa Attorney General’s investigation cited in legislative discussions found that over 95% of kiosk transactions were linked to active scams, with one study pegging the figure at 98% over three years. Nationally, a 2024 FBI report indicated that individuals aged 60 and older lost over $100 million to such schemes, with thefts increasing year-over-year. Minnesota currently hosts about 350 licensed kiosks operated by 8 to 10 companies.[4][5][6]

“Cryptocurrency scams have targeted some of our most vulnerable neighbors who have lost tens of thousands of dollars. In an instant, that money is gone with very little chance of recovery.” — Sen. Amanda Hemmingsen-Jaeger (DFL-Woodbury)[4]

Senate Precedent and Bipartisan Momentum

The House action follows the Minnesota Senate’s passage of companion legislation, SF3868, on April 9 by a 57-10 margin. Sponsored by Sen. Hemmingsen-Jaeger, the Senate bill withstood amendments and debates before advancing to the House. Lawmakers laid over the House companion, HF3642 (also by Koegel), earlier for inclusion in the larger omnibus package.[2][4]

HF4188 incorporates the Department of Commerce’s policy proposals alongside elements from HF3642, HF4071, and HF4120. During committee deliberations, Rep. Tim O’Driscoll noted debates over enhanced regulations versus an outright ban, opting for the latter while promising further study.[1][3]

Opposition from Kiosk Operators

Virtual currency kiosk operators vehemently oppose the ban, arguing it punishes legitimate businesses for crimes committed by third parties. “It’ll prevent them from operating in the state when they’re not the ones conducting the scams,” industry representatives have contended. Critics worry scammers will pivot to other methods, as noted in Senate discussions where one lawmaker remarked, “They’re resourceful, and they will find a way.” Indiana remains the only state with a full kiosk ban to date.[1][3][6]

Key Milestones in Minnesota’s Crypto Kiosk Ban Legislation

Date	Event	Bill/Action
February 2025	House committee hears testimony on scams	HF3642 laid over
April 9, 2025	Senate passes ban	SF3868 (57-10 vote)
Wednesday (recent)	House committee approves omnibus with ban	HF4188 amended
Thursday (recent)	House floor passage	HF4188 (122-12 vote)

Broader Implications for Crypto Regulation

The omnibus bill extends beyond kiosks, addressing various commerce policies from the Department of Commerce. If reconciled and signed by Gov. Tim Walz, the ban could set a precedent for other states grappling with crypto-related fraud. Supporters hail it as a consumer protection victory, particularly for seniors, while opponents call for targeted enforcement over blanket prohibitions.

As the bill moves to the Senate, bipartisan support suggests a high likelihood of enactment before session’s end. Lawmakers remain vigilant, balancing innovation with public safety in the evolving digital currency landscape.

This article synthesizes reports from official legislative sources and news outlets covering the Minnesota House’s commerce policy advancements.