Today, the state Senate Communications and Technology Committee, Chaired by Pennsylvania Senator Tracy Pennycuick (R-24th) and the Senate Banking and Insurance Committee held a joint hearing about consumer protections for virtual currency and virtual currency kiosks.
The focus of the hearing featured Senate Bill 1015, introduced by Pennycuick to establish commonsense consumer protections for the growing number of virtual currency kiosks operating throughout the Commonwealth.
The kiosks, which allow individuals to buy and sell cryptocurrency, are rapidly appearing in gas stations, convenience stores, grocery stores and other retail locations across Pennsylvania.
“While this is an important innovation in financial technology, their unregulated expansion poses risks, particularly to seniors and vulnerable consumers who are often targeted by scams involving cryptocurrency transactions,” said Pennycuick. “My proposed legislation would establish clear guidelines for kiosk operators to ensure transparency, accountability, and protection of the consumer,” she added.
The bill will require operators to provide disclosure of risks associated with cryptocurrency, anti-fraud warnings, maintain anti-fraud mitigation policies, and enhance safeguards against financial exploitation of older adults. Companies would also be required to report the location of each virtual currency kiosk they operate in the commonwealth. Prior to any transaction, customers would receive warnings about common scams and be required to confirm that the funds being used belong to them and are not being directed by outside actors.
Operators would also need to provide transaction receipts, establish live 24hr customer service support, use blockchain analytics software to detect and prevent transactions tied to known fraudulent activity, and designate compliance and consumer protection officers to oversee their responsibilities under the law. Additionally, all kiosk operators will have to obtain a money transmitter license from the Commonwealth.
Virtual currency kiosk companies provided testimony citing guardrails in place to prevent fraud and scams, expressing support for license requirements. The companies stated that scams are typically performed by smaller, less established start-ups.
The Pennsylvania Attorney General’s office expressed support for the legislation and made additional recommendations to the bill to enhance kiosk security, including having large signs at kiosks raising awareness about fraud, requiring a state issued identification card to set up an account, and requiring an affirmative acknowledgement from the individual using the kiosk after each fraud warning.
In 2025, Americans lost over $15.9 billion to virtual currency scams. In Pennsylvania, over 90 consumer complaints were submitted to the Attorney General’s office cheating victims out of $12.3 million.
For complete testimony, see below.
Testifiers included:
John O’Connell, Advisory Board Member – Testimony, Testimony 2
Pennsylvania Blockchain Coalition
Christopher Edwards, Assistant General Counsel – Testimony
Bitcoin Depot
Jon Turke, Director of Government Affairs – Testimony
CoinFlip
Paul Edger, Senior Deputy Attorney General, Harrisburg Region of Bureau of Consumer Protection
Pennsylvania Office of the Attorney General
AARP Pennsylvania – Testimony
Frank Serina, Chief Risk Officer – Testimony
Members First
Video of the full public hearing and written testimony can be found on the Senate Communications and Technology Committee website.
CONTACT: Lidia Di Fiore (215) 541-2388