The regulatory squeeze on crypto ATMs in the US is tightening. What began as sporadic compliance questions has evolved into a more systematic crackdown, with authorities increasingly scrutinizing these machines for anti-money laundering failures and know-your-customer gaps. State regulators and federal agencies aren't taking a light touch anymore—stricter licensing requirements and operational oversight are becoming the new baseline. For operators, this means higher compliance costs and narrower margins. For the broader crypto ecosystem, it signals how traditional finance regulatory frameworks are being retrofitted onto decentralized infrastructure. The question isn't really whether crypto ATMs survive, but how they'll be reshaped in a more stringent environment.