House Bill 303 Alabama 2026 Session

Summary

Primary Sponsor

Russell BedsoleRepresentative

Republican

Session

2026 Regular Session

Title

Cryptocurrency; measures to prevent fraud imposed, penalties established, Alabama Securities Commission authorized to enforce

Summary

HB303 would create the Cryptocurrency Kiosk Fraud Prevention Act, requiring disclosures, receipts, fraud protections, refunds, and enforcement by the Alabama Securities Commission for cryptocurrency kiosks.

What This Bill Does

HB303 would add a new section to Alabama law requiring cryptocurrency kiosks to clearly disclose transaction terms and fees, provide a consumer receipt and a digital receipt to the Alabama Securities Commission, and display fraud warnings. It would require fraud-prevention measures, authorize refunds for fraudulently induced transactions, and establish a consumer service line with direct lines to law enforcement and the ASC. It would impose transaction limits, require identity verification, and use blockchain analytics to block known fraudulent addresses, with civil and criminal penalties for violations. It would also require compliance with federal reporting rules and prohibit certain practices, including the sharing of kiosks with financial institutions.

Who It Affects

• Consumers who use cryptocurrency kiosks: they would receive clear disclosures, official receipts, fraud warnings, and potential refunds if fraud occurs.
• Cryptocurrency kiosk operators: they would have new duties to disclose terms, issue receipts, perform fraud protections, maintain service lines, report data, and face penalties for violations.

Key Provisions

• Disclosures: operators must clearly disclose all terms and conditions, fees, total amounts, and exchange rates; consumers must acknowledge disclosures before a transaction.
• Receipts: operators must provide a physical or digital receipt after each transaction and send a digital receipt to the Alabama Securities Commission, including transaction details and addresses.
• Fraud prevention and refunds: operators must use blockchain analytics to block transactions involving known fraudulent addresses and must refund fraudulently induced transactions under specified conditions.
• Reporting and enforcement: operators must maintain a US-based toll-free consumer service line and dedicated communication lines to law enforcement and the ASC; fraud calls must be reported to the ASC within two business days; violations carry civil and criminal penalties.
• Limits and compliance: cash/crypto transaction limits are imposed per day and per month; identity verification is required; privacy coins are prohibited; operators must comply with applicable federal reporting requirements (e.g., BSA, Patriot Act).

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Businesses & Financial Institutions