TLDR
- Governor Pritzker criticizes former President Trump’s approach to digital asset regulation.
- Illinois introduces two new crypto bills aimed at enhancing consumer protection.
- The Digital Assets and Consumer Protection Act grants oversight authority to the state’s financial department.
- The Digital Asset Kiosk Act regulates cryptocurrency ATMs to prevent fraud and set transaction limits.
- Illinois ranks fifth in crypto-related fraud losses, motivating the stricter regulatory measures.
Illinois Governor JB Pritzker criticized former President Donald Trump’s approach to digital asset regulation while signing two new crypto bills into law. The legislation aims to increase oversight on crypto activities within the state, setting clear consumer protection standards. Pritzker’s comments underscore the state’s commitment to protecting investors from rising crypto-related fraud.
Governor Pritzker Critiques Trump’s Crypto Oversight
Governor Pritzker took a direct jab at the Trump administration’s stance on digital assets.
“While the Trump Administration is letting crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” Pritzker said during the bill signing.
His remarks highlight the stark contrast between Illinois’ approach and the federal government’s more relaxed stance under Trump.
Illinois has taken a more cautious approach towards cryptocurrencies, reflecting its stance on consumer safety. The governor emphasized the importance of taking action, stating that Illinois would not “sit idle while fraudsters run rampant.” This marks a significant divergence from the crypto policies of Republican-led states, which often favor deregulation and industry promotion.
Two Crypto Bills Aim for Stricter Regulations
The Digital Assets and Consumer Protection Act (SB 1797) is the first of two key measures introduced to regulate crypto activities. It grants the Illinois Department of Financial and Professional Regulation the authority to oversee crypto businesses and platforms. The law mandates that exchanges maintain adequate financial reserves and adhere to cybersecurity standards while implementing anti-fraud controls to protect consumers.
Another component of the legislation, the Digital Asset Kiosk Act (SB 2319), focuses on regulating cryptocurrency ATMs in the state. This law requires kiosk operators to register with the state, provide refunds to scam victims, and limit transaction fees. Additionally, the bill caps daily transactions for first-time customers at $2,500, setting a clear limit on crypto activity to ensure better security for users.
Illinois Leads with Consumer Protection Amid Rising Crypto Frauds
Illinois has positioned itself as a leader in consumer protection within the crypto space. With fraud losses reaching $272 million in 2024, the state is tightening regulations to shield residents from scams. Lawmakers have pointed to the rapid rise in fraud as the driving factor behind the new crypto bills.
The bills aim to address the growing threat of fraud, a concern exacerbated by federal inaction.
“At a time when fraudsters continue to evolve, and consumer protections are being eroded at the federal level, Illinois is sending a clear message,” said Governor Pritzker.
His administration’s swift action contrasts sharply with the federal government’s failure to provide sufficient oversight of the crypto industry.
