Reps. Kishman, Miller Testify on ELDER Act in Committee

State Representatives Matthew Kishman (R-Minerva) and Melanie Miller (R-Ashland) provided sponsor testimony this week in the House Financial Institutions Committee on House Bill 648, also known as the ELDER (Ending Losses and Deception in Electronic Resources) Act.

The ELDER Act - sponsored by Reps. Kishman and Miller - aims to provide clear and uniform standards for the use of cryptocurrency or 'bitcoin' ATMs, which can lead to cases of fraud, predatory practices, and misuse, particularly for older Ohioans and vulnerable populations. Crypto kiosks can be found in public places such as grocery stores, gas stations and other retail locations as a legitimate way to buy or sell crypto currency. However, there has been a significant uptick in crypto ATM scams around the country in recent years, which particularly target older Americans.

"The ELDER Act is about protecting Ohio consumers, particularly our most vulnerable residents, from fraud and financial harm in an increasingly digital financial landscape," said Rep. Kishman during testimony. "Too often, these machines are used as tools to defraud seniors and other unsuspecting Ohioans out of their life savings. This bill sets common sense guardrails to prevent that from happening."

House Bill 648 requires virtual currency kiosk operators to be licensed as money transmitters, subject to the same financial oversight and solvency requirements that already apply to other entities handling consumer funds.

"House Bill 648 strikes a balance between enabling Ohioans to participate in the digital economy and ensuring they are protected when they do," said Rep. Miller during testimony. "It holds an underregulated industry accountable, deters bad actors, and gives Ohioans the information and safeguards they need to make informed financial decisions."

The bill works to establish important consumer safeguards, including:

• Establishing a 72-hour hold for new customers: New customers are subject to a 72-hour hold on their transactions, giving them time to reconsider or cancel if something feels wrong.
• Reasonable transaction limits: The bill sets daily limits of $2,500 for new customers and $10,500 for existing customers to help prevent large losses from fraudulent activity.
• Identity verification requirements: Operators must verify the identity of customers conducting transactions of $1,000 or more, adding another layer of accountability.
• Special protections for older Ohioans: If a new customer aged 60 or older attempts a transaction of $1,000 or more, the operator must speak with the customer by phone before the transaction can proceed. During that call, the operator must:
  • Discuss the purpose of the transaction, and
  • Review common fraud and scam tactics used to target seniors.
• A clear path to restitution for victims of fraud. If a customer is defrauded and reports the crime to law enforcement within 30 days, the operator must refund transaction fees and commissions within ten business days. Operators must also maintain full-time compliance staff and designate a chief compliance officer to ensure these protections are properly enforced.

These provisions are designed to strike a careful balance between ensuring that Ohioans can continue to access and use digital assets if they choose, while creating strong, clear protections against fraud, abuse, and financial harm.

Reps. Kishman and Miller worked with AARP Ohio, Bitcoin Depot, Coinflip, and Coinbase on the legislation.

To watch the sponsor testimony, click here.