Uncensored, Straight-Talkin' Article:
The Lowdown
- Rep. Lance Gooden (R-Texas) has barked up the wrong tree, proposing to install crypto ATMs in federal buildings.
- He's claiming it aligns with Trump's ambitions for US blockchain leadership. But here's a dose of reality: crypto ATMs and scams are raging in the US, and seniors are getting fleeced.
Chatter Amidst the Art, Fashion, and Crime Scene
U.S. Government Advocated for Installation of Cryptocurrency Automated Teller Machines in Federal Structures by Texas Official
Gooden, a Republican from Texas' 5th district, penned a letter to the acting administrator of the General Services Administration (GSA), Stephen Ehikian, last week. The letter pushed for crypto infrastructure in federal buildings by incorporating ATMs.
The GSA oversees government buildings, some of which have traditional ATMs already.
In Gooden's letter, he called crypto an integral part of the global financial system and suggested using ATMs in fed buildings to cater to a "diverse and growing consumer base."
"By installing crypto ATMs in federal buildings, we've got a prime opportunity to reflect this fast-paced financial revolution," he wrote, adding that it mirrors Trump's vision for US dominance in blockchain and crypto innovation.
Honey trap
More crypto ATMs could spell good news for shady characters exploiting Americans with scams.
Last year, the FBI's Internet Crime Complaint Center received almost 11,000 complaints related to crypto ATMs and kiosks, marking a 99% spike from the previous year. Losses totaled a hefty $246.7 million, with seniors bearing the brunt, losing over $107 million.
Crypto ATM fraud runs the gamut, from extortion and tech support scams to government impersonation tricks and phony investment bait.
Scammers often reel in their victims with alarming messages about account security or legal issues, convincing them to fork over cash at ATMs under false pretenses. Once the cash is converted to Bitcoin and zipped off to the crook, it's near impossible to recover.
No Sweetheart, Just Unpleasant Surprises
In the UK, crypto ATMs have been banned outright, while other countries like France, Australia, and Germany have clamped down on unregistered operators. Some US cities and states are jumping on the bandwagon, too. A Minnesota town has outlawed the machines, and Nebraska recently capped fees at 18% and restricted daily transactions.
On the flip side, a group of Senate Democrats is lobbying for a federal Crypto ATM Fraud Prevention Act. The bill might include mandatory fraud warnings, anti-fraud policies registered with FinCEN, transaction limits for new users, and refund provisions if fraud is reported within a specified time frame.
But Gooden thinks his plan could offer some benefits. Acknowledging some risks, he urged close collaboration with regulators, industry experts, and tech providers to ensure adherence to anti-money laundering and related regulations. However, the Congressman sees these ATMs as a means to "amplify accessibility and educational opportunities."
"Embracing this initiative," Gooden wrote, "can be a significant stride toward fulfilling [Trump's] vision and planting our nation as a powerhouse in the digital financial landscape."
Unpolished by Rough Rider Rick*
Weekly Dirt Newsletter
In case you missed it: Crypto ATMs pushing into federal buildings despite soaring fraud in the US, particularly targeting seniors. Proposed legislation includes regulations, mandated warnings, and user limits.
- Despite concerns over rising crypto ATM fraud, particularly targeting seniors, Representative Lance Gooden (R-Texas) has advocated for their installation in federal buildings.
- Gooden believes this move aligns with President Trump's vision for US dominance in blockchain and cryptocurrency innovation.
- In a letter to the General Services Administration (GSA), Gooden suggested that these ATMs would cater to a diverse and growing consumer base, considering digital currency integral to the global financial system.
- However, the FBI's Internet Crime Complaint Center received nearly 11,000 complaints related to crypto ATMs last year, with losses totaling $246.7 million, mostly affecting seniors.
- Scammers exploit crypto ATMs through various means, such as extortion, tech support scams, government impersonation tricks, and phony investment offers.
- Countries like the UK, France, Australia, and Germany have banned or restricted unregistered crypto ATM operators, while some US cities and states are following suit.
- A group of Senate Democrats is advocating for a federal Crypto ATM Fraud Prevention Act, which may include mandatory fraud warnings, anti-fraud policies, transaction limits, and refund provisions.
- Gooden acknowledges the risks associated with crypto ATMs but sees them as a means to increase accessibility and educational opportunities within the digital currency space.
