McFall, Aragona Testify on Bipartisan Legislation to Regulate Cryptocurrency Kiosks, Protect Consumers from Fraud
State Rep. Mike McFall (D-Hazel Park) testifies in committee at the Anderson House Office Building in Lansing.
LANSING, Mich., March 10, 2026 — State Reps. Mike McFall (D-Hazel Park) and Joe Aragona (R-Clinton Twp.) testified last Thursday before the House Regulatory Reform Committee on bipartisan legislation designed to regulate cryptocurrency kiosks in Michigan and strengthen consumer protections against fraud.
House Bills 5469 and 5470 would establish new safeguards for users of virtual currency kiosks, commonly known as cryptocurrency ATMs, which law enforcement officials say are increasingly being used in scams that disproportionately target older adults.
House Bill 5470, sponsored by McFall, would amend Michigan’s Money Transmission Services Act to explicitly include virtual currency kiosk activity under the state’s existing regulatory framework for money transmission businesses. The change would ensure kiosk operators are subject to the same regulation and compliance requirements as other financial transaction services operating in Michigan.
“Too many Michiganders, especially seniors, are being targeted by scammers who direct victims to cryptocurrency kiosks to send money that is nearly impossible to recover,” McFall said. “These bills bring much-needed oversight to this rapidly growing industry and give law enforcement and consumers the tools they need to prevent fraud.”
House Bill 5469, sponsored by Aragona, focuses on consumer protections. The bill would require cryptocurrency kiosks to display clear warning labels alerting users to common scams, including those involving individuals impersonating government officials. The legislation would also establish a waiting period for first-time users, allowing time for transactions to be stopped if fraud is suspected.
“Cryptocurrency kiosks are becoming more common, but so are scams targeting vulnerable seniors,” Aragona said. “This legislation cracks down on fraudulent actors who exploit these machines while putting clear rules in place to protect consumers and ensure responsible operators can continue doing business in Michigan.”
Industry representatives testified in support of the legislation, including Chris Edwards of Bitcoin Depot and Larry Lipka of CoinFlip, two of the largest cryptocurrency kiosk providers in the United States. Both noted they have already implemented compliance controls and fraud prevention measures and welcomed clear statewide regulations to establish consistent consumer protections across the industry.
Local officials also emphasized the need for regulation. Sterling Heights Police Chief Andrew Satterfield and Assistant City Manager Dale Dwojakowski testified on the increase in fraud cases involving cryptocurrency kiosks and stressed the importance of allowing law enforcement to access necessary transaction data when investigating scams.
Cassie Thierfelder, Advocacy Manager and Jason Lachowski Associate State Director, Government Affairs of AARP Michigan testified in a neutral position, supporting efforts to protect consumers while encouraging lawmakers to consider additional safeguards such as adding transaction limits and providing stronger refund protections for victims of fraud.
McFall said the bipartisan legislation represents an important step toward addressing a growing financial crime.
“As technology evolves, scammers evolve with it,” McFall concluded. “Michigan needs clear rules that protect consumers while allowing legitimate businesses to operate responsibly.”
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