Crypto ATMs in Federal Buildings: A Controversial Proposal
Federal Government Encouraged to Install Cryptocurrency ATMs in U.S. Government Buildings by Texas Legislator
In a surprising turn of events, Rep. Lance Gooden (R., Texas) is advocating for the installation of cryptocurrency ATMs in federal buildings, sympathizing with former President Trump's ambitions for U.S. blockchain leadership. This proposition, however, faces criticism due to the substantial surge in crypto ATM-related fraud in the states, particularly affecting vulnerable senior citizens.
In a letter penned to General Services Administration's acting administrator, Stephen Ehikian, Gooden justified the proposal by emphasizing crypto's integral role in the global financial system and supporting the financial needs of an ever-growing consumer base. He envisioned federal buildings' public spaces mirroring the rapid evolution of the cryptocurrency trend.
Gooden's initiative raises serious concerns about increased opportunities for organized crime groups who prey on Americans with scams. In 2024 alone, nearly 11,000 complaints were filed with the FBI’s Internet Crime Complaint Center, amounting to $246.7 million in losses – with seniors being disproportionately targeted and losing over $107 million.
Fraud associated with crypto ATMs includes tech support scams, government impersonation schemes, extortion, and phony investment offers. The anonymous nature of cryptocurrency transactions and the difficulty in recovering funds make these scams particularly dangerous.
Although some jurisdictions, such as the UK, Australia, France, and Germany, have imposed bans or tightened regulations on unregistered crypto ATM operators, the U.S. is yet to adopt stringent measures. Some cities and states, like Minnesota and Nebraska, have enacted local laws restricting or prohibiting the use of these machines.
To counteract crypto ATM fraud, a group of Democratic senators is pushing for the Crypto ATM Fraud Prevention Act. The proposed bill will mandate fraud warnings, register anti-fraud policies with FinCEN, impose transaction limits for new users, and provide refunds for reported fraud within a specific period.
Despite the acknowledged risks, Gooden believes that the installation of crypto ATMs could bring several advantages. He emphasizes the need for close collaboration with regulators, industry experts, and technology providers to ensure adherence to anti-money laundering standards, clear transaction transparency, and a comprehensive approach to address the issue of fraud. Nonetheless, Gooden supports the proposition, arguing that these ATMs would be invaluable for enhanced accessibility and educational opportunities, helping the U.S. achieve its goal of becoming a superpower in the digital financial landscape.
Edited by Sebastian Sinclair
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- Rep. Lance Gooden is advocating for cryptocurrency ATMs in federal buildings, citing cryptocurrency's integral role in the global financial system.
- Gooden's proposition faces criticism due to the surge in crypto ATM-related fraud, particularly affecting senior citizens.
- Crypto ATMs are associated with fraud schemes such as tech support scams, government impersonation, extortion, and phony investment offers.
- The anonymous nature of cryptocurrency transactions and difficulty in recovering funds makes these scams dangerous.
- Some countries, like the UK, Australia, France, and Germany, have imposed bans or tightened regulations on unregistered crypto ATM operators.
- A group of Democratic senators is pushing for the Crypto ATM Fraud Prevention Act, which aims to mandate fraud warnings, register anti-fraud policies, and provide refunds for reported fraud.
- Gooden believes that crypto ATMs could bring advantages, including enhanced accessibility and educational opportunities for the U.S. in the digital financial landscape.
- Gooden supports the proposition, stressing the need for close collaboration with regulators, experts, and technology providers to address the issue of fraud.
