Tennessee Imposes Comprehensive Ban on Cryptocurrency ATMs with Harsh Penalties

Tennessee has become the latest state in the US to impose restrictions on cryptocurrency ATMs, with Governor Bill Lee signing House Bill 2505 into law.

The bill, which passed both chambers unanimously, prohibits the installation and operation of virtual currency self-service terminals statewide. The law will take effect on July 1, 2026, and violators face Class A misdemeanor charges, including a maximum penalty of one year in jail and a $2,500 fine.

The scope of liability under this law extends not only to ATM operators but also to merchants who allow these devices on their premises. This move follows Indiana's lead as the second state in the US to implement a comprehensive ban on cryptocurrency ATMs.