STAND. COM. REP. NO. 2257

Honolulu, Hawaii

RE: S.B. No. 2387

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Labor and Technology, to which was referred S.B. No. 2387 entitled:

"A BILL FOR AN ACT RELATING TO DIGITAL FINANCIAL ASSET TRANSACTION KIOSKS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish limits on transactions through digital financial asset transaction kiosks; and

(2) Require operators of digital financial asset transaction kiosks to use blockchain analytics and tracing software to prevent fraud, make certain disclosures, provide receipts to customers, provide full refunds under certain circumstances, provide live customer service, and a dedicated communications line for the Attorney General, the Office of Consumer Protection, the Department of Law Enforcement, and county police departments.

Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Department of Health, Department of the Prosecuting Attorney of the City and County of Honolulu, Department of the Prosecuting Attorney of the County of Maui, AARP Hawaii, Hawaii Credit Union League, Hawaiʻi Family Caregiver Coalition, Greenwood Law Corp., and nine individuals.

Your Committees received testimony in opposition to this measure from CoinFlip; Bitcoin Depot; and Hilt Ventures, LLC.

Your Committees find that digital financial asset transaction kiosks can be used by scammers to defraud consumers in the State, resulting in significant financial losses. This measure would introduce regulations on digital financial asset transaction kiosks in the State and their operators to protect consumers from fraudulent behavior.

Your Committees have amended this measure by:

(1) Inserting language that clarifies transaction limits;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Labor and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2387, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2387, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Labor and Technology,

________________________________ BRANDON J.C. ELEFANTE, Chair

________________________________ JARRETT KEOHOKALOLE, Chair