The cfqueryparam cfsqltype to use for SQL Server datetime / smalldatetime values is cf_sql_timestamp. You can re-write the code as follows:
<CFSET dateTimes=DateFormat(Now(),"mm/dd/yyyy")>
<CFQUERY NAME="updateTime" DATASOURCE="#this_datasource#">
UPDATE users
SET ACTIVITYDATE = <cfqueryparam value="#dateTimes#" cfsqltype="cf_sql_timestamp">
WHERE username = <cfqueryparam value="#Form.login_username#" cfsqltype="cf_sql_varchar">
AND Password = <cfqueryparam value="#Form.Password#" cfsqltype="cf_sql_varchar">;
</CFQUERY>
Using cfqueryparam is recommended to avoid SQL injection vulnerabilities.
See: https://wikidocs.adobe.com/wiki/display/coldfusionen/cfqueryparam