Tennessee Public Chapter 766, Acts of 2026 (HB 2505) — virtual currency kiosk ban (also saved by another researcher at sources/kyc-aml/)

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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.

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                                 ~tate of \!tennessee
                            PUBLIC CHAPTER NO. 766
                                       HOUSE BILL NO. 2505

      By Mr. Speaker Sexton, Representatives Reedy, Lamberth, Brock Martin, Todd

                              Substituted for: Senate Bill No. 2251

                                       By Senator Johnson

        AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 8;
Title 12; Title 13; Title 29; Title 39; Title 45; Title 47 and Title 67, relative to virtual currency
kiosks.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

         SECTION 1. Tennessee Code Annotated, Title 45, Chapter 16, is amended by adding
the following as a new part:

       45-16-201.

               As used in this part:

                       (1) "Electronic terminal":

                                (A) Means an electronic device through which a person may
                       initiate an electronic fund transfer to access the person's deposit, share,
                       or other accounts or credit facility; and

                              (B) Includes an automated teller machine, cash dispensing
                       machine, point of sale terminal, or other cash, debit, stored value, script,
                       or cash equivalent device;

                       (2) "Person" means an individual or entity;

                       (3) "Virtual currency" means a digital representation of value used as a
               medium of exchange, a unit of account, or a store of value, but does not have
               legal tender status as recognized by the United States government;

                      (4) "Virtual currency kiosk" means an electronic terminal acting as a
               mechanical agent of the virtual currency kiosk operator to enable the virtual
               currency kiosk operator to facilitate the exchange of virtual currency for money,
               bank credit, or other virtual currency, including by:

                               (A) Connecting directly to a separate virtual currency exchange
                       that performs the actual virtual currency transmission; or

                               (8) Drawing upon the virtual currency in the possession of the
                       electronic terminal's operator; and

                       (5) "Virtual currency kiosk operator" means a person that:

                              (A) Engages in virtual currency business activity via an electronic
                       terminal located in this state or a person that owns, operates, or manages
                       an electronic terminal located in this state through which virtual currency
                       business activity is offered;

                              (8) Knowingly permits the use or installation of a virtual currency
                       kiosk on property owned, leased, or controlled by the person; or

                               (C) Owns a virtual kiosk that is located or operated in this state.
HB2505

       45-16-202.

              (a) It is an offense for a virtual currency kiosk operator or other person to
       knowingly install or allow installation of, permit, place, or otherwise operate a virtual
       currency kiosk in this state.

              (b) A violation of subsection (a) is a Class A misdemeanor.

        SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it, and
applies to acts occurring on or after that date.

                                              2
                     HOUSE BILL NO.      2505

PASSED:     March 16, 2026

                                      CAMER~SEXTON,SPEAKER
                                      HOUSE OF REPRESENTATIVES

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                                                RANDY MCN4■-LY
                                           PEAKER OF THE SENl TE

APPROVED this     fs"½iay of     Apr;\              2026

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BILL LEE, GOVERNOR