An Act to stop cryptocurrency ATM misuse ("SCAM" Act)

194th Legislature (2025-2026) Introduced by Mike Brady and 15 co-sponsors

The bill bans operating cryptocurrency ATMs in Massachusetts, enforcing the prohibition under consumer-protection law and allowing penalties, disgorgement, and penalties.

Bill reported favorably by committee and referred to the committee on Senate Ways and Means

Summary: S.3048 (194th Mass. Gen. Court) – An Act to Stop Cryptocurrency ATM Misuse ("SCAM" Act)

Purpose
- Prohibits the operation of virtual currency kiosks (cryptocurrency ATMs) in Massachusetts.
- Aims to curb fraud and misuse associated with on-site cryptocurrency transactions by removing the ability to operate these kiosks in the state and by enabling enforcement actions against operators and premises owners.

Key Provisions
- New Chapter: The bill adds Chapter 167K to the General Laws, titled “Regulation of Virtual Currency Kiosks.”
- Definitions:
- Virtual currency kiosk: An electronic terminal that acts as a mechanical agent to facilitate exchange of virtual currency for money, bank credit, or other virtual currency. It may connect to an external virtual currency exchange or draw upon the operator’s own held virtual currency.
- Virtual-currency kiosk operator: Any person or entity engaging in virtual-currency business activity via a money transmission kiosk in Massachusetts or owning/operating a money transmission kiosk in Massachusetts that offers virtual-currency business activity.
- Prohibition:
- Section 2(a): A virtual currency kiosk operator may not operate a virtual currency kiosk in Massachusetts.
- Section 2(b): Violation of subsection (a) is treated as a violation of Chapter 93A, Section 2 (Massachusetts consumer protection/unfair and deceptive practices).
- Enforcement:
- Section 2(c): The Attorney General may bring action under Chapter 93A against:
- The virtual currency kiosk operator; and
- The owner of the premises if they knowingly or intentionally allowed the kiosk to be on-site.
- Remedies and Sanctions:
- Section 2(d): If a court finds a violation, in addition to other penalties, the court may order:
1) Forfeiture of the charges collected from users during the period the kiosks operated in violation.
2) Forfeiture of any virtual currency kiosk owned by the operator located in Massachusetts.
3) Payment of the Attorney General’s investigative costs.
- Effective Date:
- Section 4: The act takes effect upon passage.

Impact and Scope
- Operators: Virtual currency kiosk operators would be barred from operating anywhere in Massachusetts, effectively banning the use of cryptocurrency ATMs in the state under this act.
- Premises Owners: Landlords or property owners who knowingly host such kiosks could be subject to enforcement actions.
- Consumers: The bill is designed to reduce fraud or misuse associated with on-site crypto kiosks by removing the ability to access these services locally.
- Legal/Regulatory: Brings virtual currency kiosks under Chapter 93A consumer protection enforcement via the Attorney General, with potential civil penalties and disgorgement of charges and assets tied to kiosks.
- Timeline: Immediate effect upon passage; no phased rollout or grace period is specified.

Process and Status
- Filed and reported favorably from the Senate Committee on Financial Services (April 15, 2026).
- Referred to the Senate Ways and Means following committee action.
- Sponsored by a broad group of senators, with multiple co-sponsors.

Notes
- The bill’s name—“SCAM Act”—reflects its intent to combat misuse and protect consumers by removing cryptocurrency kiosks from use within the Commonwealth.
- If enacted, Massachusetts would join other states that restrict cryptocurrency ATM operations as a tool against potential fraud or illicit activity.