Senate Commerce Committee Statement to Senate, No. 2141 — State of New Jersey (June 8, 2026)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 2141, State of New Jersey, dated June 8, 2026, reporting the bill favorably. The bill prohibits any business entity from owning, controlling, installing, or managing a cryptocurrency automatic teller machine (ATM) in the State, and defines both cryptocurrency and a cryptocurrency ATM. Doing so would be an unlawful practice under the consumer fraud act, punishable by a penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. The statement cites the Federal Trade Commission's Consumer Sentinel Network for fraud losses linked to these machines of more than $110 million in 2023 and over $65 million in the first half of 2024.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
2141

STATE
OF NEW JERSEY

DATED: JUNE 8,
2026

The Senate Commerce Committee reports favorably Senate
Bill No. 2141.

This bill prohibits any business entity from owning,
controlling, installing, or managing a cryptocurrency automatic teller machine
(ATM) in this State.

Under the bill, cryptocurrency is defined as any
digital form of currency that functions as a medium of exchange through a
decentralized computer network without reliance on any central authority such
as a government or financial institution. In addition, a cryptocurrency ATM
means a physical, internet-connected kiosk allowing users to buy, sell, send,
or receive cryptocurrency by depositing money using a debit card, credit card,
or cash.

Under the provisions of the bill, owning, controlling,
installing, managing, selling, or offering for sale a cryptocurrency ATM in
this State is an unlawful practice under the consumer fraud act, punishable by
a monetary penalty of not more than $10,000 for a first offense and not more
than $20,000 for any subsequent offense. In addition, violations may result in
cease and desist orders issued by the Attorney General, the assessment of
punitive damages, and the awarding of treble damages and costs to the injured
party.

While cryptocurrency ATMs offer a convenient way for
individuals to buy, sell, send, or receive digital currencies, there has been a
significant rise in scams associated with their use. According to the United
States Federal Trade Commission’s Consumer Sentinel Network, fraud losses
linked to these cryptocurrency automatic teller machines have surged nearly
tenfold since 2020 to more than $110 million in 2023 and exceeded $65 million
in just the first half of 2024. Since many incidents of fraud go unreported,
these figures likely represent only a portion of the overall impact. It is the
sponsor’s intent to protect consumers from falling victim to financial losses
associated with the use of cryptocurrency automatic teller machines.

This bill was pre-filed for introduction in the
2026-2027 session pending technical review. As reported, the bill includes the
changes required by technical review, which has been performed.

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