The Senate Business, Financial Services & Trade Committee convened on January 23, 2025, to discuss critical issues surrounding financial regulations, particularly focusing on the implications of fee caps for money transmission services and the rising concerns regarding crypto ATM fraud.

The meeting began with discussions on the potential establishment of a fee cap for money transmission services. Testifiers expressed that a 5% fee cap could jeopardize the viability of businesses in this sector. One participant highlighted the need for a balanced approach, indicating that the fee cap should be determined in conjunction with transaction limits, as both factors are interdependent. They noted that in other states, fee caps are often set higher than 5%, suggesting a willingness to negotiate on this matter to ensure the industry remains competitive.

The conversation then shifted to consumer protection, particularly regarding the use of crypto ATMs. Kathleen McCall, representing AARP of Washington State, raised alarms about the increasing prevalence of fraud linked to these machines. She reported that crypto ATM fraud has become the fastest-growing form of financial fraud, with scammers exploiting these kiosks to deceive consumers, especially older adults. McCall shared a harrowing account of a woman who lost her life savings through such a transaction, underscoring the urgent need for regulatory measures.

McCall advocated for tighter regulations on crypto kiosks, including implementing a cap on transaction fees and limiting the amount consumers can deposit in a single transaction. She emphasized that misinformation surrounding cryptocurrency transactions is rampant, particularly with scams claiming to be endorsed by government entities.

The committee concluded the session without immediate resolutions but acknowledged the need for further discussions on regulatory frameworks to protect consumers while maintaining a competitive market for financial services. The next steps will likely involve drafting proposals for potential regulations based on the testimonies and concerns raised during the meeting.