Nikolas Sargeant
Illinois Governor JB Pritzker signed two landmark cryptocurrency bills on Monday, creating the Midwest's first comprehensive digital asset consumer protections while delivering sharp criticism of the Trump administration's crypto policies. The governor accused the federal government of letting "crypto bros write federal policy" as he approved legislation designed to combat the state's mounting cryptocurrency fraud crisis.
The two bills address Illinois' significant cryptocurrency fraud problem, with FBI data showing residents lost $272 million to crypto scams in 2024 alone, making it the fifth-highest state nationwide for such losses. The Digital Assets and Consumer Protection Act grants the Illinois Department of Financial and Professional Regulation authority to oversee digital asset exchanges and businesses, requiring them to maintain adequate financial resources, implement cybersecurity measures, and provide investment disclosures similar to traditional financial services.
The Digital Asset Kiosk Act specifically targets cryptocurrency ATMs by requiring operators to register with state regulators, cap transaction fees at 18%, limit daily transactions to $2,500 for new customers, and provide full refunds to scam victims. These kiosk regulations aim to protect vulnerable consumers who are often targeted by scammers through these machines, particularly first-time users who may be tricked into large investments.
The legislation creates a stark contrast with federal deregulation efforts, as Pritzker's office criticized the Trump administration for "actively deregulating the crypto industry at a time when consumers are increasingly at risk of fraud." The governor specifically cited Trump's signing of a bill that overturned IRS rules expanding broker definitions to include decentralized finance exchanges. Notably, Illinois had previously considered a more crypto-friendly approach earlier this year when Representative John Cabello introduced House Bill 1844 proposing a strategic Bitcoin reserve for the state treasury, though this bill ultimately failed to pass at the committee level, demonstrating the state's shift toward prioritizing consumer protection over crypto adoption. The new consumer protection laws give companies until July 1, 2027, to register and comply with the comprehensive regulatory framework.
