Federal Court Rejects Challenge to Tennessee Crypto ATM Ban, Law Takes Effect on July 1

According to Odaily, a federal court rejected an emergency challenge to Tennessee's cryptocurrency ATM ban on July 1, 2026. Public Chapter 766 remains enforceable during ongoing constitutional litigation filed by CoinFlip and Private IT Corporation. Under the law, knowingly installing, permitting, placing, or operating a virtual currency self-service terminal in Tennessee constitutes a Class A felony. Tennessee Attorney General Jonathan Skrmetti stated that crypto ATMs are tools used by fraudsters to target vulnerable residents and rarely serve legitimate purposes.
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