On April 13, Tennessee Governor Bill Lee signed House Bill 2505 into law, prohibiting the installation and operation of virtual currency kiosks in the state. The law amends the Tennessee Money Transmission Act and is effective July 1, 2026. Specifically, the law makes it an offense for a kiosk operator or other person to knowingly install or allow installation of, permit, place, or otherwise operate a virtual currency kiosk in Tennessee. The law defines a “virtual currency kiosk” as an electronic terminal that facilitates the exchange of virtual currency for money, bank credit, or other virtual currency. The definition includes terminals that connect to a separate exchange to complete the transmission or draw on virtual currency held by the operator.

Putting It Into Practice: Tennessee’s new law follows Indiana’s recent prohibition on virtual currency kiosks (previously discussed here). Tennessee’s enactment reinforces that some states are moving away from regulating how these kiosks operate and instead prohibiting them entirely. Businesses involved with kiosk operations or related virtual currency services should review whether any Tennessee activity must be wound down before July 1, 2026.