AARP Condemns Decision That Puts Crypto Kiosk Profits Ahead of Public Safety

Seattle, WA — AARP Washington today expressed deep disappointment following the failure by the House  Consumer Protection and Business Committee to advance Senate Bill 5280, bipartisan legislation designed to protect Washington residents from widespread fraud associated with crypto kiosks. Despite overwhelming evidence that the machines are being used to steal millions of dollars from consumers - particularly older adults - state lawmakers failed to enact common-sense consumer safeguards.

With about 1,000 of the nation’s 30,000 crypto kiosks in our state, SB 5280 would have curbed crypto-related fraud by introducing sensible safeguards, including caps on daily transactions, limits on excessive fees, required paper receipts, and clear scam warnings on every machine.

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The bill received strong support from a broad coalition of consumer advocates, regulators, and industry stakeholders, including the Washington State Department of Financial Institutions, the Office of the Attorney General, the Washington State Bankers Association, and the Association of Washington Cities. SB 5280 was also backed by Senators from both sides of the aisle, reflecting rare bipartisan agreement that consumer protections were urgently needed. Despite that widespread support, the House Committee ultimately failed to pass the measure, leaving Washington consumers exposed to continued harm.

“SB 5280 was about protecting people, not industry profits,” said Cathy MacCaul, AARP Washington Advocacy Director. “The House of Representatives is responsible for the demise of this bill and it comes at the expense of Washington consumers who will continue to be exposed to scams, financial exploitation, and irreversible losses.”

Crypto kiosks - often marketed as “crypto ATMs” or “bitcoin ATMs” - are commonly found in grocery stores, convenience stores, gas stations, and restaurants throughout the state. Scammers routinely instruct victims to withdraw large amounts of cash and deposit it into kiosks, converting the money into cryptocurrency that is quickly transferred and nearly impossible to recover. In fact, in Iowa and the District of Columbia, regulators have reported that more than 90% of transactions facilitated by crypto kiosks have been fraudulent.

The scope and severity of the problem is undeniable. In 2025 alone, the FBI received more than 12,000 complaints involving crypto kiosks nationwide, with reported losses exceeding $333 million. Older adults bore the brunt of those losses, making crypto kiosk fraud one of the fastest-growing and most financially devastating scam tactics targeting seniors. “As disturbing as those numbers are, we know they represent only the tip of the iceberg,” said MacCaul. “Scams and fraud are vastly underreported, as many victims feel embarrassed, confused, or uncertain about whether to report what happened.”

“Lawmakers had a clear opportunity to put basic guardrails in place—such as transaction limits, fee caps, and prominent scam warnings,” MacCaul said. “Instead, they allowed industry lobbyists to portray consumer protections as a threat to their business model. The truth is these safeguards would have prevented predictable and preventable harm.”

While AARP is frustrated by the outcome, the organization emphasized that it is not backing down.  “We will continue standing up for Washington consumers and fighting to stop scams and fraud,” said MacCaul. “We will be back, and we will not stop until meaningful consumer protections are enacted.”