House Bill No. 5986 (introduced), cryptocurrency kiosk prohibition act

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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.

HOUSE BILL NO. 5986

     May 19, 2026, Introduced by Reps. Koleszar, T. Carter, Weiss, Wegela, Xiong, Young,
       Rheingans, MacDonell, Martus and Morgan and referred to Committee on Regulatory Reform.

          A bill to prohibit the installation and operation of
    cryptocurrency kiosks; to provide for the powers and duties of
    certain state and local governmental officers and entities; to
    prescribe civil sanctions; and to provide remedies.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1         Sec. 1. This act may be cited as the "cryptocurrency kiosk
2   prohibition act".
3         Sec. 3. As used in this act:
4         (a) "Commissioner" means that term as defined in section 3 of
5   the McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239,

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 1   MCL 432.3.
 2         (b) "Cryptocurrency" means digital currency in which
 3   encryption techniques are used to regulate the generation of units
 4   of currency and verify the transfer of funds, and that operates
 5   independently of a central bank.
 6         (c) "Cryptocurrency kiosk" means a kiosk, automated teller
 7   machine, vending machine, or other electronic terminal that enables
 8   a cryptocurrency kiosk operator to facilitate the purchase, sale,
 9   or exchange of money for cryptocurrency or of cryptocurrency for
10   money. Cryptocurrency kiosk includes, but is not limited to, an
11   electronic terminal that does either of the following:
12         (i) Connects directly to a separate cryptocurrency exchange
13   that performs the cryptocurrency transmission.
14         (ii) Draws on cryptocurrency that is in the possession of the
15   operator of the electronic terminal.
16         (d) "Cryptocurrency kiosk operator" means a person that owns
17   or operates a cryptocurrency kiosk.
18         (e) "Money" means a medium of exchange authorized or adopted
19   by the United States or a foreign government as a part of its
20   currency that is customarily used and accepted as a medium of
21   exchange in the country of issuance. The term includes a monetary
22   unit of account established by an intergovernmental organization or
23   by agreement between 2 or more governments.
24         (f) "Person" means an individual or a partnership,
25   corporation, limited liability company, association, governmental
26   entity, or other legal entity.
27         Sec. 5. A person shall not do any of the following:
28         (a) Install or operate a cryptocurrency kiosk.
29         (b) Allow a cryptocurrency kiosk to be installed or operated

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 1   on any premises that the person owns, leases, or controls.
 2         Sec. 7. (1) A person that violates section 5 is subject to a
 3   civil fine of not more than $100.00 for each day of violation. The
 4   prosecutor of the county in which the violation occurred or the
 5   attorney general may bring an action to collect the civil fine. A
 6   civil fine collected under this section must be deposited in the
 7   general fund.
 8         (2) If a county prosecutor or the attorney general brings an
 9   action against a person under subsection (1), the county prosecutor
10   or attorney general shall provide written notice to the
11   commissioner of each of the following events not later than 7 days
12   after the occurrence of the event:
13         (a) The commencement of the action.
14         (b) Any determination made in the action as to whether the
15   person violated section 5.
16         (c) Any appeal filed by the person.
17         (3) A person that violates section 5 is subject to a licensing
18   action under this subsection if the person holds a lottery sales
19   agent license under the McCauley-Traxler-Law-Bowman-McNeely lottery
20   act, 1972 PA 239, MCL 432.1 to 432.47. If a person is determined to
21   have violated section 5 in an action brought under subsection (1),
22   the commissioner shall suspend the person's lottery sales agent
23   license for 90 days.
24         Enacting section 1. This act takes effect 90 days after the
25   date it is enacted into law.
26         Enacting section 2. This act does not take effect unless
27   Senate Bill No. ____ (request no. S06776'26 a) or House Bill No.
28   5987 (request no. H06776'26 a) of the 103rd Legislature is enacted
29   into law.

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