Security

Federal court approves Tennessee bitcoin ATM ban

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July 9, 2026

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Tennessee officially banned crypto ATMs earlier this year, with the ban taking place on July 1st, making it the second state to ban crypto ATMs following Indiana. Now, the state has also received approval from a federal court, according to a press release from Tennessee.

CoinFlip and Private IT Corp. filed a lawsuit for a temporary restraining order to prevent the enforcement of the law on July 1. The United States District Court denied this request.

The law in question was Public Chapter 766, which makes it a Class A misdemeanor to own, operate or place a crypto ATM in the state. The state defended itself on the basis of scammer's usage of the machines.

"Cryptocurrency ATMs are tools for scammers targeting vulnerable Tennesseans and are rarely used for anything approaching a legitimate purpose," Attorney General Jonathan Skrmetti said in the release. "The General Assembly recognized that these machines benefit fraudsters at the expense of everyday citizens, and the Court recognized the strong public interest in allowing this law to take effect while the case proceeds. If you see evidence that an elderly relative or friend is trying to make an unusual cryptocurrency transaction, work with them to make sure they're not being ripped off."

Although the request was denied, the lawsuit will continue.