Woofun AI reports that a U.S. federal court denied an emergency temporary restraining order sought by CoinFlip and Private IT Corporation against Tennessee's cryptocurrency ATM prohibition effective July 1. The judge ruled that the plaintiffs' demonstrated economic harm did not outweigh the state's public interest in enforcing the legislation.

Tennessee Attorney General Jonathan Skrmetti characterized crypto ATMs as "tools for scammers targeting vulnerable residents," noting their lack of legitimate utility. The statute designates operating such machines as a Class A misdemeanor. While Tennessee, Indiana, and Vermont enforce total bans, Delaware considers similar measures, and North Carolina and Virginia impose stricter rules. The ongoing constitutional challenge will determine the ban's long-term viability.