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Congressional Daily Record
This section is about changes proposed to a bill or resolution. It mentions members such as Richard Joseph Durbin.
Issued
March 20, 2026
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Download official Senate Record PDFReturn to issue contextSA 4736. Mr. DURBIN submitted an amendment intended to be proposed by him to the bill S. 1383, to establish the Veterans Advisory Committee on Equal Access, and for other purposes; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. . CRYPTO ATM FRAUD PREVENTION.
(a) Registration With the Secretary of the Treasury.—
Section 5330 of title 31, United States Code, is amended—
(1) in subsection (d)—
(A) in paragraph (1)(A), by inserting “, any person who
owns, operates, or manages a virtual currency kiosk in the
United States or its territories,” after “similar
instruments”; and
(B) by adding at the end the following:
“(3) Virtual currency; virtual currency address; virtual
currency kiosk; virtual currency kiosk operator.—The terms
`virtual currency', `virtual currency address', `virtual
currency kiosk', and `virtual currency kiosk operator' have
the meanings given those terms, respectively, in section
5337.”; and
(2) by adding at the end the following:
“(f) Registration of Virtual Currency Kiosk Locations.—
“(1) In general.—Not later than 90 days after the
effective date of this subsection, and not less than once
every 90 days thereafter, the Secretary of the Treasury shall
require virtual currency kiosk operators to submit an updated
list containing the physical address of each virtual currency
kiosk owned or operated by the virtual currency kiosk
operator.
“(2) Form and manner of registration.—Each submission by
a virtual currency kiosk operator pursuant to paragraph (1)
shall include—
“(A) the legal name of the virtual currency kiosk
operator;
“(B) any fictitious or trade name of the virtual currency
kiosk operator;
“(C) the physical address of each virtual currency kiosk
owned, operated, or managed by the virtual currency kiosk
operator that is located in the United States or the
territories of the United States;
“(D) the start date of operation of each virtual currency
kiosk;
“(E) the end date of operation of each virtual currency
kiosk, if applicable; and
“(F) each virtual currency address used by the virtual
currency kiosk operator.
“(3) False and incomplete information.—The filing of
false or materially incomplete information in a submission
required under paragraph (1) shall be deemed a failure to
comply with the requirements of this subsection.”.
(b) Preventing Fraudulent Transactions at Virtual Currency
Kiosks.—
(1) In general.—Subchapter II of Chapter 53 of Title 31,
United States Code, is amended by adding at the end the
following:
“Sec. 5337. Virtual currency kiosk fraud prevention
“(a) Definitions.—In this section:
“(1) Blockchain analytics.—The term `blockchain
analytics' means the analysis of data from blockchains or
public distributed ledgers, and associated transaction
information, to provide risk-specific information about
virtual currency transactions and virtual currency addresses.
“(2) Customer.—The term `customer' means any person that
purchases or sells virtual currency through a virtual
currency kiosk.
“(3) Existing customer.—The term `existing customer'
means a customer other than a new customer.
“(4) FinCEN.—The term `FinCEN' means the Financial Crimes
Enforcement Network of the Department of the Treasury.
“(5) New customer.—The term `new customer', with respect
to a virtual currency kiosk operator, means a customer during
the 14-day period beginning on the date of the first virtual
currency kiosk transaction of the customer with the virtual
currency kiosk operator.
“(6) Transaction hash.—The term `transaction hash' means
a unique identifier made up of a string of characters that
act as a record of and provide proof that a transaction was
verified and added to the blockchain.
“(7) Virtual currency.—The term `virtual currency' means
any digital representation of value that is recorded on a
cryptographically secured distributed ledger or any similar
technology or another implementation, which was designed and
built as part of a system to leverage or replace blockchain,
distributed ledger technology, or their derivatives.
“(8) Virtual currency address.—The term `virtual currency
address' means an alphanumeric identifier associated with a
virtual currency wallet identifying the location to which
virtual currency purchased through a virtual currency kiosk
can be sent or from which virtual currency sold through a
virtual currency kiosk can be accessed.
“(9) Virtual currency kiosk.—The term `virtual currency
kiosk' means a stand-alone machine—
“(A) that is capable of accepting or dispensing legal
tender in exchange for virtual currency; or
“(B) through which a person acting on the behalf of, or a
mechanical agent of, the virtual currency kiosk operator of
the machine may enable the virtual currency kiosk operator to
facilitate the exchange of legal tender for virtual currency,
including by—
“(i) connecting directly to a separate virtual currency
exchange that performs a virtual currency kiosk transaction;
or
“(ii) drawing upon the virtual currency in the possession
of the virtual currency kiosk operator.
“(10) Virtual currency kiosk operator.—The term `virtual
currency kiosk operator' means a person who owns, operates,
or manages a virtual currency kiosk located in the United
States or its territories.
“(11) Virtual currency kiosk transaction.—The term
`virtual currency kiosk transaction' means the purchase or
sale of virtual currency via a virtual currency kiosk.
“(12) Virtual currency wallet.—The term `virtual currency
wallet' means a software application or other mechanism
providing a means for holding, storing, and transferring
virtual currency.
“(b) Disclosures.—Before entering into a virtual currency
transaction with a customer, a virtual currency kiosk
operator shall disclose in a clear, conspicuous, and easily
readable manner—
“(1) all relevant terms and conditions of the virtual
currency kiosk transaction, including—
“(A) the amount of the virtual currency kiosk transaction;
“(B) the type and nature of the virtual currency kiosk
transaction;
“(C) a warning that the virtual currency kiosk transaction
is final, is not refundable, and may not be reversed;
“(D) the type and amount of any fees or other expenses
paid by the customer; and
“(E) the exchange rates of—
“(i) the virtual currency to United States dollars, with
respect to the virtual currency kiosk transaction; and
“(ii) the virtual currency to United States dollars on the
global marketplace;
“(2) a warning relating to consumer fraud including—
“(A) a warning that consumer fraud often starts with
contact from a stranger, and that the customer should never
send money to someone they do not know;
“(B) a warning about the most common types of fraudulent
schemes involving virtual currency kiosks, such as—
“(i) impersonation of a government official or a bank
representative;
“(ii) threats of jail time or financial penalties;
“(iii) offers of a job or reward in exchange for payment,
or offers of deals that seem too good to be true;
“(iv) claims of a frozen bank account or credit card; or
“(v) requests for donations to charity or disaster relief;
and
“(C) a statement that the customer should contact the
virtual currency kiosk operator's customer service helpline
or State or local law enforcement if they suspect fraudulent
activity; and
“(3) a disclosure relating to the material risks
associated with virtual currency and virtual currency
transactions, including disclosures to the effect of—
“(A) virtual currency is not issued or backed by the
United States Government and is not legal tender;
“(B) a virtual currency is not subject to protections by
the Federal Deposit Insurance Corporation, National Credit
Union Administration, or Securities Investor Protection
Corporation;
“(C) virtual currency transactions involve risk as the
value of virtual currencies is derived from supply and demand
in the global marketplace and virtual currencies may lose
value; and
“(D) a person or business that accepts virtual currency as
payment today may not accept virtual currency as payment in
the future.
“(c) Acknowledgment of Disclosures.—
“(1) In general.—Each time a customer uses a virtual
currency kiosk, the virtual currency kiosk operator shall
ensure acknowledgment of all disclosures required under
subsection (b) via confirmation of consent of the customer at
the virtual currency kiosk.
“(2) Refund eligibility.—Many disclosures under this
section are intended to serve as warnings to customers who
may be conducting a virtual currency kiosk transaction as a
result of a scam. The acknowledgment of the disclosures
required under this section shall not affect eligibility or
prevent a fraud victim from being eligible for a refund.
“(d) Receipts.—Upon completion of each virtual currency
kiosk transaction, the virtual currency kiosk operator shall
provide the customer with a receipt, which shall include the
following information:
“(1) The name and contact information of the virtual
currency kiosk operator, including a telephone number for a
customer service helpline.
“(2) The name of the customer.
“(3) The type, value, date, and precise time of the
virtual currency kiosk transaction, transaction hash, and
each applicable virtual currency address.
“(4) The amount of the virtual currency kiosk transaction
expressed in United States dollars.
“(5) All fees charged.
“(6) A statement that the customer may be entitled by law
to a refund if the customer reports fraudulent activity in
conjunction with the virtual currency kiosk transaction not
later than 30 days after the date of the virtual currency
kiosk transaction.
“(7) The refund policy of the virtual currency kiosk
operator or a Uniform Resource Locator where the refund
policy of the virtual currency kiosk operator can be found.
“(8) A statement that the customer should contact law
enforcement if they suspect fraudulent activity, such as
scams, including contact information for a relevant law
enforcement or government agency.
“(9) Any additional information the virtual currency kiosk
operator determines appropriate.
“(e) Physical Receipts Required.—Not later than 1 year
after the effective date of this section, each receipt
required under subsection (d) shall be issued to the customer
as a physical receipt at the virtual currency kiosk at the
time of the virtual currency kiosk transaction, but such
receipt may also be provided in additional forms or
communications.
“(f) Anti-fraud Policy.—
“(1) In general.—Each virtual currency kiosk operator
shall take reasonable steps to detect and prevent fraud,
including establishing and maintaining a written anti-fraud
policy that includes—
“(A) the identification and assessment of fraud-related
risk areas;
“(B) procedures and controls to protect against risks
identified under subparagraph (A);
“(C) allocation of responsibility for monitoring the risks
identified under subparagraph (A); and
“(D) procedures for the periodic evaluation and revision
of the anti-fraud procedures, controls, and monitoring
mechanisms under subparagraphs (B) and (C).
“(2) Submission of anti-fraud policy to fincen.—Each
virtual currency kiosk operator shall submit to FinCEN the
anti-fraud policy required under paragraph (1) not later than
90 days after the later of—
“(A) the effective date of this section; or
“(B) the date on which the virtual currency kiosk operator
begins operating.
“(g) Appointment of Compliance Officer.—Each virtual
currency kiosk operator shall designate and employ a
compliance officer who—
“(1) is qualified to coordinate and monitor compliance
with this section and all other applicable Federal and State
laws, rules, and regulations;
“(2) is employed full-time by the virtual currency kiosk
operator;
“(3) is not the chief executive officer of the virtual
currency kiosk operator; and
“(4) does not own or control more than 20 percent of any
interest in the virtual currency kiosk operator.
“(h) Use of Blockchain Analytics.—
“(1) In general.—Each virtual currency kiosk operator
shall use blockchain analytics to prevent sending virtual
currency to a virtual currency wallet known to be affiliated
with fraudulent activity at the time of a virtual currency
kiosk transaction and to detect transaction patterns
indicative of fraud or other illicit activities.
“(2) Compliance.—The Director of FinCEN may request
evidence from any virtual currency kiosk operator to confirm
compliance with this subsection.
“(i) Verbal Confirmation Required Before New Customer
Transactions.—
“(1) In general.—Before entering into a virtual currency
kiosk transaction valued at 300 dollars or more with a new
customer, a virtual currency kiosk operator shall obtain
verbal confirmation from the new customer that—
“(A) the new customer wishes to proceed with the virtual
currency kiosk transaction;
“(B) the new customer understands the nature of the
virtual currency kiosk transaction; and
“(C) the new customer is not being fraudulently induced to
engage in the transaction.
“(2) Reasonable effort.—A virtual currency kiosk operator
shall make a reasonable effort to determine whether the
customer is being fraudulently induced to engage in the
virtual currency kiosk transaction.
“(3) Method of confirmation.—Each verbal confirmation
required under paragraph (1) shall be given by way of a live
telephone or video call to a person employed by, or on behalf
of, the virtual currency kiosk operator.
“(j) Refunds.—
“(1) In general.—
“(A) New customers.—Not later than 30 days after
receiving an application under paragraph (2), a virtual
currency kiosk operator shall issue a refund to a customer
for the full amount of each virtual currency kiosk
transaction, including the dollar value of virtual currency
exchanged and all transaction fees, made during the period in
which the customer was a new customer and for which the
customer was fraudulently induced to engage in the virtual
currency kiosk transaction.
“(B) Existing customers.—Not later than 30 days after
receiving an application under paragraph (2), a virtual
currency kiosk operator shall issue a refund to a customer
for the full amount of all transaction fees associated with
each virtual currency kiosk transaction made during the
period in which the customer was an existing customer and for
which the customer was fraudulently induced to engage in the
virtual currency kiosk transaction.
“(2) Application.—A customer seeking a refund under
paragraph (1) shall, not later than 90 days after the date of
the virtual currency kiosk transaction, submit an application
to the virtual currency kiosk operator that includes the
following:
“(A) The name, address, and phone number of the customer.
“(B) The transaction hash of the virtual currency kiosk
transaction or information sufficient to determine the type,
value, date, and time of the virtual currency kiosk
transaction.
“(C) A copy of a report to a State or local law
enforcement or government agency, made not later than 90 days
after the virtual currency kiosk transaction, that includes a
sworn affidavit attesting that the customer was fraudulently
induced to engage in the virtual currency kiosk transaction.
“(3) Enhanced damages.—Any person who knowingly denies a
refund to a customer who is entitled to a refund pursuant to
paragraph (1) shall be liable to the customer for 3 times the
amount of the refund owed under that paragraph or $10,000,
whichever is greater. A penalty under this paragraph shall be
in addition to any penalty under subsection (o).
“(k) Transaction Limits.—
“(1) In a 24-hour period.—During any 24-hour period, a
virtual currency kiosk operator shall not accept more than—
“(A) $1,000, or the equivalent amount in virtual currency,
from any new customer; or
“(B) $2,000, or the equivalent amount in virtual currency,
from any existing customer.
“(2) Total.—A virtual currency kiosk operator shall not
accept a total of more than $5,000, or the equivalent amount
in virtual currency, from any new customer.
“(l) Transaction Freezes With Respect to New Customers.—
“(1) In general.—Each virtual currency kiosk operator
shall place a 48-hour transaction freeze for new customer for
each transaction made during 14-day period during which a
customer is a new customer.
“(2) Lifting of the transaction freeze.—A virtual
currency kiosk operator may automatically lift a transaction
freeze under paragraph (1) after the 48-hours freeze period
unless the customer contacts the virtual currency kiosk
operator before the end of the 48-hour freeze period to
report fraudulent activity.
“(m) Customer Service Helpline.—Each virtual currency
kiosk operator shall provide live customer service during all
hours that the virtual currency kiosk operator accepts
virtual currency kiosk transactions, the phone number for
which is regularly monitored and displayed in a clear,
conspicuous, and easily readable manner upon each virtual
currency kiosk.
“(n) Communications With Law Enforcement.—
“(1) In general.—Each virtual currency kiosk operator
shall provide a dedicated and frequently monitored phone
number and email address for relevant law enforcement and
government agencies to facilitate communication with the
virtual currency kiosk operator in the event of reported or
suspected fraudulent activity.
“(2) Submission.—Not later than 90 days after the
effective date of this section, each virtual currency kiosk
operator shall submit the phone number and email address
described in paragraph (1) to FinCEN and all other relevant
law enforcement and government agencies.
“(o) Civil Penalties.—
“(1) In general.—Any person who fails to comply with any
requirement of this section, or any regulation prescribed
under this section, shall be liable to the United States for
a civil monetary penalty of $10,000 for each such violation.
“(2) Continuing violation.—Each day that a violation
described in paragraph (1) continues shall constitute a
separate violation for purposes of such paragraph.
“(3) Assessments.—Any penalty imposed under this section
shall be assessed and collected by the Secretary of the
Treasury as provided in section 5321 and any such assessment
shall be subject to the provisions of that section.
“(p) Relationship to State Laws.—The provisions of this
section shall preempt any State law, rule, or regulation only
to the extent that such State law, rule, or regulation
conflicts with a provision of this section. Nothing in this
section shall be construed to prohibit a State from enacting
a law, rule, or regulation that provides greater protection
to customers than the protection provided by the provisions
of this section.”.
(2) Clerical amendment.—The table of sections for chapter
53 of title 31, United States Code, is amended by inserting
after the item relating to section 5336 the following: “5337. Virtual currency kiosk fraud prevention.”.
(c) Effective Date.—The amendments made by this section
shall take effect 90 days after the date of enactment of this
Act.