Senate Bill 2251, also known as House Bill 2505, amends various sections of the Tennessee Code Annotated to establish regulations surrounding virtual currency kiosks. The bill introduces a new part to Title 45, Chapter 16, defining key terms such as "electronic terminal," "person," "virtual currency," "virtual currency kiosk," and "virtual currency kiosk operator." It specifies that a virtual currency kiosk is an electronic terminal that facilitates the exchange of virtual currency for money or other forms of value, either by connecting to a virtual currency exchange or using the operator's own virtual currency.

Additionally, the bill makes it an offense for a virtual currency kiosk operator or any individual to knowingly install or operate a virtual currency kiosk in the state of Tennessee, classifying such a violation as a Class A misdemeanor. The act is set to take effect on July 1, 2026, and will apply to actions occurring on or after that date.