S.710 - Crypto ATM Fraud Prevention Act of 2025 (119th Congress)
Summary
The Crypto ATM Fraud Prevention Act of 2025 (S.710) aims to combat fraudulent transactions at virtual currency kiosks by amending Title 31 of the United States Code. The bill introduces registration requirements for virtual currency kiosk operators with the Secretary of the Treasury, mandating the submission of kiosk locations and operator information. It also establishes measures to prevent fraud, including disclosures, receipt requirements, anti-fraud policies, compliance officer appointments, and the use of blockchain analytics.
Expected Effects
The Act will likely increase regulatory oversight of virtual currency kiosks, potentially reducing fraudulent activities and protecting consumers. It will impose new compliance burdens on kiosk operators, requiring them to implement anti-fraud measures and provide detailed transaction information. The Act could also lead to greater consumer confidence in virtual currency transactions conducted through kiosks.
Potential Benefits
- Increased consumer protection through required disclosures and fraud prevention measures.
- Enhanced transparency in virtual currency kiosk operations through registration and reporting requirements.
- Improved law enforcement capabilities to track and investigate fraudulent virtual currency transactions.
- Standardized practices for virtual currency kiosk operators, promoting a more secure and reliable environment.
- Potential for increased adoption of virtual currency through kiosks due to enhanced trust and safety.
Most Benefited Areas:
Potential Disadvantages
- Increased compliance costs for virtual currency kiosk operators, potentially leading to higher fees for consumers or business closures.
- Potential for reduced privacy due to increased data collection and reporting requirements.
- Possible limitations on access to virtual currency for individuals who rely on kiosks for transactions.
- Risk of regulatory overreach that could stifle innovation in the virtual currency industry.
- The effectiveness of the Act depends on the ability of FinCEN and other agencies to enforce the new regulations.
Constitutional Alignment
The bill aligns with the Commerce Clause (Article I, Section 8) by regulating interstate commerce involving virtual currency. It also aligns with the government's power to coin money and regulate its value (Article I, Section 8). The requirements for registration and reporting are subject to scrutiny under the Fourth Amendment regarding unreasonable searches and seizures, but are likely permissible given the compelling government interest in preventing fraud. The First Amendment implications regarding freedom of speech are minimal, as the disclosures required are related to commercial transactions and preventing fraud, which are subject to reasonable regulation.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).