Texas Rep Proposes Crypto ATMs in Federal Buildings Amid Fraud Surge

Rep. Lance Gooden (R., Texas) has proposed installing crypto ATMs in federal buildings, aligning with President Donald Trump’s vision of U.S. dominance in blockchain and crypto innovation. Gooden, representing Texas' 5th congressional district, wrote to the General Services Administration’s acting administrator Stephen Ehikian, urging the agency to embrace crypto infrastructure through the addition of these machines. The GSA manages government buildings, some of which already contain regular banking ATMs.

In his letter, Gooden described crypto as "an integral part of the global financial system" and proposed using ATMs in federal buildings to support the financial needs of a "diverse and growing consumer base." He emphasized that providing access to cryptocurrency ATMs in federal buildings would ensure that public spaces reflect the rapidly evolving trend in digital currency.

However, the proposal comes at a time when crypto ATM-related fraud is surging in the U.S. Nearly 11,000 complaints were filed in 2024 relating to crypto ATMs and kiosks, with losses totaling $246.7 million. Seniors were disproportionately affected, losing more than $107 million. Fraud tied to crypto ATMs includes extortion, tech support scams, government impersonation schemes, and phony investment offers. Scammers commonly ask targets to use these machines to transfer money due to the difficulty of clawing back funds, the anonymity they provide, and the lack of contact with anyone who might question large transactions.

Other jurisdictions have already taken steps to address this issue. The UK has banned crypto ATMs outright, while France, Australia, and Germany have clamped down on unregistered operators. In the U.S., some cities and states are also enacting restrictions or bans. A Minnesota town has outlawed the machines, and Nebraska recently capped fees at 18% and limited daily transactions. A group of Democratic senators is pushing for a federal Crypto ATM Fraud Prevention Act, which includes mandatory fraud warnings, anti-fraud policies registered with FinCEN, transaction limits for new users, and refund provisions if fraud is reported within a set period.

Despite the risks, Gooden believes his initiative could yield several benefits. He acknowledged the need for close collaboration with regulators, industry experts, and technology providers to ensure adherence to anti-money laundering and other relevant standards. He advocated for the ATMs in bringing “enhanced accessibility and public education opportunities.” Gooden stated that by embracing this initiative, the U.S. could take a significant step toward realizing Trump’s vision and solidifying the nation’s status as a superpower in the digital financial landscape.