{"id":15172,"date":"2025-08-19T09:42:36","date_gmt":"2025-08-19T07:42:36","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=15172"},"modified":"2025-08-19T09:42:36","modified_gmt":"2025-08-19T07:42:36","slug":"illinois-implements-new-consumer-protection-regulations-for-cryptocurrency","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/08\/19\/illinois-implements-new-consumer-protection-regulations-for-cryptocurrency\/","title":{"rendered":"Illinois Implements New Consumer Protection Regulations for Cryptocurrency"},"content":{"rendered":"

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Illinois Governor JB Pritzker criticized US President Donald Trump for permitting \u201ccrypto advocates\u201d to dictate policy as he endorsed two bills aimed at regulating crypto in the state on Monday.<\/p>\n

\u201cWhile the Trump Administration is permitting crypto advocates to draft federal policy, Illinois is executing rational safeguards for investors and consumers,\u201d stated<\/a> Pritzker on Monday while sanctioning the legislation.<\/p>\n

Crypto regulation has become contentious on a state level since the Republicans secured victory in the election last November, with states like Texas and Arizona fully embracing the sector, whereas others, like the Democratic stronghold Illinois, have adopted a more prudent approach.<\/p>\n

The first bill, The Digital Assets and Consumer Protection Act (SB 1797<\/a>), empowers the Illinois Department of Financial and Professional Regulation to oversee digital asset exchanges and firms. It secured approval<\/a> from the Illinois Senate in April.<\/p>\n

The measure mandates that crypto firms and exchanges maintain sufficient financial resources, adopt cybersecurity and fraud prevention practices, offer investment disclosures, and comply with customer service standards akin to traditional financial services.<\/p>\n

\u201cDuring an era when con artists are continually adapting, and consumer protections are being undermined at the federal level, Illinois is delivering a definitive message that we won\u2019t permit exploitation of our citizens and their hard-earned assets,\u201d \u200bPritzker emphasized.<\/p>\n

Source: <\/em>Governor JB Pritzker<\/em><\/a><\/figcaption><\/figure>\n

Regulations for Crypto ATMs enacted<\/h2>\n

The Illinois governor also enacted the Digital Asset Kiosk Act (SB 2319<\/a>), which specifically addresses cryptocurrency kiosks or ATMs by requiring operators to register with state authorities, issue complete refunds to scam victims, limit transaction fees to 18%, and restrict daily transactions to $2,500 for new customers.<\/p>\n

\u201cThe residents of Illinois deserve dependable, consistent protections, regardless of the financial service they utilize for their hard-earned funds,\u201d remarked Representative Edgar Gonzalez Jr.<\/p>\n

Related: <\/strong><\/em>Coinbase faces lawsuit over alleged violations of Illinois biometric privacy law<\/strong><\/em><\/a><\/p>\n

Approximately $272 million was lost in Illinois due to crypto fraud cases in 2024, ranking it as the fifth-highest state nationally for losses, according<\/a> to the FBI.<\/p>\n

Continued critique of Trump<\/h2>\n

The governor\u2019s office persisted in criticizing Trump\u2019s crypto policies, asserting that his administration had \u201cactively deregulated the crypto industry at a time when consumers are increasingly susceptible to fraud.\u201d<\/p>\n

They particularly referenced Trump’s April signing<\/a> of a bill that revoked a modified rule from the Internal Revenue Service, which broadened the definition of a broker to encompass decentralized finance exchanges.<\/p>\n

Illinois Bitcoin reserve proposal rejected<\/h2>\n

Earlier this year, the state dismissed a bill proposing it invest in Bitcoin (BTC<\/a>).<\/p>\n

Illinois state Representative John Cabello presented<\/a> House Bill 1844 in January to establish a strategic Bitcoin reserve for the state treasury to acquire and hold the asset for five years.<\/p>\n

The measure failed to advance<\/a> in committee voting, as reported by Bitcoin Laws.<\/p>\n

Magazine: <\/strong><\/em>Coinbase calls for \u2018full-scale\u2019 alt season, Ether eyes $6K: Hodler\u2019s Digest<\/strong><\/em><\/a><\/p>\n