Illinois Governor J.B. Pritzker has signed two new cryptocurrency bills into law, creating the first consumer protection framework for digital assets in the Midwest. At the same time, he took aim at President Trump, accusing his administration of letting “crypto bros” shape federal policy.
Pritzker vs. Trump on Crypto Policy
In his August 19 press release, Pritzker emphasized the difference between Illinois’ approach and Washington’s.
“While Trump lets crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” he said.
The governor’s office pointed to Trump’s April signing of a bill that overturned an IRS rule classifying decentralized exchanges as brokers, calling it evidence of the administration’s “active deregulation” of crypto at a time when fraud risks are rising.
Illinois has reason to be concerned the state ranked fifth nationwide for crypto fraud losses, with residents losing about $272 million in 2024, according to the FBI.
What’s in the Two Bills?
The newly passed laws focus on regulating crypto businesses and crypto ATMs:
- Digital Assets and Consumer Protection Act (SB1797)
- Grants oversight powers to the Illinois Department of Financial and Professional Regulation (IDFPR).
- Requires exchanges and crypto firms to disclose full fee structures.
- Mandates clear risk disclosures, including whether user funds are insured and the possibility of losing access to assets.
- Digital Asset Kiosk Act (SB2319)
- Regulates crypto ATMs (kiosks) and their operators.
- Requires registration with IDFPR.
- Mandates full refunds for new customers who fall victim to scams.
- Caps transaction fees at 18%.
- Limits daily transactions for new customers to $2,500.
Together, these measures aim to establish accountability in the growing crypto sector while reducing opportunities for fraud.
Illinois’ Mixed Stance on Crypto
Despite these moves, Illinois is not seen as a particularly crypto-friendly state. Earlier this year, lawmakers rejected House Bill 1844, which would have created a state-run Bitcoin reserve.
Introduced by Rep. John Cabello, the proposal sought to allow the state treasury to buy and hold Bitcoin for five years, manage the fund, and even accept resident donations in BTC. The bill, however, failed at the committee stage.
Bottom Line
With these new laws, Illinois becomes the first state in the Midwest to pass comprehensive consumer protections for crypto users. Pritzker framed the move as a safeguard against fraud and an alternative to federal deregulation under Trump.
While Illinois has rejected bold pro-crypto moves like a state Bitcoin reserve, the passage of these bills shows it is willing to regulate rather than ban digital assets a middle ground that could shape future crypto policy across the region.
