Criminal Offenses - As enacted, makes it a Class A misdemeanor for a virtual kiosk operator or other person to knowingly install or allow installation of, permit, place, or otherwise operate a virtual currency kiosk in t, the official text

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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

                         Q

                                                              RANDY MCN4■-LY
                                                   PEAKER OF THE SENlTE

Apr;\ APPROVED this
         fs"½iay of           2026

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BILL LEE, GOVERNOR