House Bill 5986 would prohibit the installation and operation of cryptocurrency kiosks in Michigan. The bill defines cryptocurrency kiosks broadly to include ATMs, vending machines, or other electronic terminals used to buy, sell, or exchange money for cryptocurrency, whether the terminal connects to an outside exchange or dispenses cryptocurrency held by the operator. It also bars a person from allowing such a kiosk on premises they own, lease, or control.
The bill creates civil enforcement tools for violations. A person who installs, operates, or permits a cryptocurrency kiosk would be subject to a civil fine of up to $100 per day, enforceable by a county prosecutor or the attorney general, with collected fines deposited into the general fund. If the violator holds a lottery sales agent license, the commissioner must suspend that license for 90 days after a violation is determined in an enforcement action. The bill would take effect 90 days after enactment, but only if a related companion bill is also enacted.
HB5986 would add a new prohibition to Michigan law targeting cryptocurrency kiosks and would create a new civil penalty scheme for operators and property owners who allow them. It would also affect the enforcement authority of county prosecutors, the attorney general, and the lottery commissioner by tying a violation to possible license suspension under the state lottery sales agent licensing law. The bill would not regulate cryptocurrency generally, but would specifically restrict kiosk-based cash-to-crypto and crypto-to-cash transactions.
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available record. Based on the bill text alone, the measure appears to reflect a restrictive policy approach toward cryptocurrency kiosks, likely motivated by concerns about consumer protection, fraud, or illicit transactions. The absence of recorded discussion makes the overall sentiment difficult to gauge beyond the bill’s clear anti-kiosk posture.
The main point of contention is likely the outright ban on cryptocurrency kiosks, which would affect kiosk operators, property owners, and businesses that host these terminals. Supporters would likely argue the ban is needed to prevent scams, money laundering, or other abuses associated with kiosk transactions, while opponents may view it as an overly broad restriction on lawful financial technology and consumer access to cryptocurrency. The bill also creates a secondary enforcement issue by linking violations to lottery sales agent license suspension, which could be seen as an additional deterrent or as an expansion of regulatory consequences beyond the kiosk activity itself.