Illinois Governor Critiques Federal Crypto Policy
In a recent move aimed at regulating the cryptocurrency landscape within his state, Illinois Governor JB Pritzker criticized President Donald Trump for permitting so-called “crypto bros” to dominate U.S. policy decisions. During a bill-signing event on Monday, Pritzker stated,
“While the Trump Administration is letting crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers.”
After a substantial Republican victory in the November elections, crypto regulation has significantly varied across the nation, with states like Texas and Arizona embracing it while Illinois remains cautious and protective of its residents.
New Legislation for Consumer Protection
One of the key pieces of legislation that Pritzker approved, known as the Digital Assets and Consumer Protection Act (SB 1797), was passed by the Illinois Senate earlier this year in April. This groundbreaking law empowers the Illinois Department of Financial and Professional Regulation to oversee operations related to digital asset exchanges and companies. Among its provisions, the new requirements will compel crypto businesses to:
- Maintain sufficient financial reserves
- Implement security measures to prevent fraud
- Disclose investment details
- Adhere to customer service standards akin to those in traditional finance
Pritzker emphasized the necessity of such measures, stating,
“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.”
Regulating Cryptocurrency Kiosks
Alongside this, the governor inaugurated the Digital Asset Kiosk Act (SB 2319), which specifically regulates cryptocurrency kiosks or ATMs. This legislation mandates that operators:
- Register with state authorities
- Provide complete refunds to individuals defrauded
- Impose an 18% ceiling on transaction fees
- Limit new customer transactions to $2,500 daily
Representative Edgar Gonzalez Jr. voiced the sentiment of the administration, affirming,
“The people of Illinois deserve reliable, consistent safeguards, no matter the financial service they utilize for their hard-earned money.”
Addressing Cryptocurrency Fraud
A recent report from the FBI revealed that Illinois ranked fifth in the nation for cryptocurrency fraud losses, totaling an alarming $272 million in 2024. In light of these statistics, the governor’s office reiterated its stance against Trump’s crypto deregulation policies, asserting that the Trump Administration’s actions have exacerbated consumer vulnerability to fraud. They pointed to Trump’s controversial signature on a bill that eliminated a revised IRS definition of brokers, which had previously expanded oversight to include decentralized finance exchanges.
Illinois’ Cautious Approach to Crypto Adoption
Furthermore, Illinois has demonstrated hesitance towards aggressive crypto adoption, having swiftly rejected a proposal to establish a Bitcoin reserve for the state treasury. Introduced in January by representative John Cabello, House Bill 1844 aimed to create a state fund to purchase and maintain Bitcoin for a five-year duration, but it failed to pass the committee vote. This highlights the ongoing caution exercised by Illinois lawmakers regarding the unpredictable nature of cryptocurrencies and their implications for residents’ investments.
