Illinois Passes Crypto Consumer Protection Laws

Illinois Governor JB Pritzker took a swipe at US President Donald Trump for allowing “crypto bros” to guide policy as he signed two new bills to regulate crypto in the state on Monday.

“While the Trump Administration is letting crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” said Governor Pritzker on Monday while approving the legislation.

Crypto policy has become divisive on a state level since the Republicans won in a landslide election in November, with some states such as Texas and Arizona fully embracing the industry while others, such as Democrat stronghold Illinois, taking a more cautious stance. 

The first bill, The Digital Assets and Consumer Protection Act (SB 1797), grants the Illinois Department of Financial and Professional Regulation authority to oversee digital asset exchanges and businesses. It passed the Illinois Senate in April. 

The legislation requires crypto companies and exchanges to maintain adequate financial resources, implement cybersecurity and anti-fraud measures, provide investment disclosures, and follow customer service standards similar to traditional financial services.

“At a time when fraudsters continue to evolve, and consumer protections are being eroded at the federal level, Illinois is sending a clear message that we won’t tolerate taking advantage of our people and their hard-earned assets,” ​Pritzker said.

Crypto ATM regulations signed 

The Illinois governor also signed The Digital Asset Kiosk Act (SB 2319), which specifically targets cryptocurrency kiosks or ATMs by requiring operators to register with state regulators, provide full refunds to scam victims, cap transaction fees at 18%, and limit daily transactions to $2,500 for new customers.

“The people of Illinois deserve reliable, consistent safeguards, no matter the financial service they utilize for their hard-earned money,” said Representative Edgar Gonzalez Jr.

Related: Coinbase faces lawsuit over alleged breaches of Illinois biometric privacy law

Around $272 million was lost in crypto fraud cases in 2024, making Illinois the fifth-highest state nationwide for losses, according to the FBI. 

Trump tirade continues 

The governor’s office continued to attack Donald Trump’s crypto policies, stating that the Trump Administration has “actively deregulated the crypto industry at a time when consumers are increasingly at risk of fraud.”

They specifically cited Trump’s April signing of a bill that overturned a revised rule from the Internal Revenue Service that expanded the definition of a broker to include decentralized finance exchanges. 

Illinois strategic Bitcoin reserve axed

The state is not the most pro-crypto in America, having quickly quashed a bill suggesting it invest in Bitcoin (BTC). 

Illinois representative John Cabello introduced House Bill 1844 in January with the purpose of creating a strategic Bitcoin reserve for the state treasury to buy and hold the asset for five years. 

However, the bill failed to pass voting at the Committee level, according to Bitcoin Laws. 

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