Illinois Governor J.B. Pritzker has signed two new bills aimed at protecting crypto consumers, marking the first such measures in the Midwest. But while celebrating the milestone, Pritzker also took aim at President Donald Trump, accusing him of letting “crypto bros” shape national policy.
“While Trump lets crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” Pritzker said in a statement. “Today, I’ve signed into law first-of-their-kind safeguards in the Midwest for cryptocurrency and other digital assets.”
The comments come just months after Trump signed a controversial federal bill in April overturning an IRS rule that would have treated decentralized exchanges as brokers a move critics say stripped away investor protections.
Illinois officials pointed to this as evidence that the administration is “actively deregulating the crypto industry at a time when consumers are increasingly at risk of fraud.” According to FBI records, Illinois ranks fifth among U.S. states for crypto fraud losses, with residents losing about $272 million in 2024 alone.
What Do the Two New Crypto Bills Do?
The newly enacted measures are designed to bring regulatory clarity and consumer safeguards into Illinois’ growing crypto market:
- SB1797 The Digital Assets and Consumer Protection Act
- Grants the Illinois Department of Financial and Professional Regulation (IDFPR) authority to oversee crypto exchanges and related businesses.
- Requires crypto companies to disclose full fee structures, clarify whether assets are insured, and inform users about key risks including potential loss of access to funds.
- SB2319 The Digital Asset Kiosk Act
- Regulates crypto ATM (kiosk) operators.
- Requires operators to register with IDFPR.
- Mandates full refunds to new customers who fall victim to scams at kiosks.
- Caps transaction fees at 18% and limits daily transactions to $2,500 for new customers.
Together, the bills establish one of the strictest frameworks for consumer protection in the U.S. crypto space.
Illinois and Crypto: A Mixed Record
While Illinois is positioning itself as a consumer-focused regulator, it has not always embraced pro-crypto policies. Earlier this year, lawmakers rejected a proposal to create a state-level Bitcoin reserve.
The bill, House Bill 1844, introduced by Rep. John Cabello, would have allowed the state treasury to buy and hold Bitcoin for at least five years while also letting residents donate BTC to a state fund. The proposal failed to advance past the committee stage.
This contrast underscores Illinois’ cautious approach: while it isn’t positioning itself as a crypto-friendly hub, it is taking strong action to protect investors and regulate industry practices.
Outlook
Illinois’ move sets a precedent for other Democratic-led states that may also seek to tighten consumer protections in the crypto sector. With fraud losses mounting and political divides over regulation deepening, the state’s approach highlights the growing tension between federal deregulation and state-level oversight.
For now, Illinois residents will benefit from new safeguards around exchanges and crypto kiosks even as the national debate over who should set the rules for digital assets continues.
