Illinois Governor J.B. Pritzker has signed two new cryptocurrency bills into law, establishing the first consumer protection framework for digital assets in the Midwest. The move came with sharp criticism of former President Donald Trump, whom Pritzker accused of letting “crypto bros” shape federal policy.
Gov Press
“While Trump lets crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” Pritzker said in a statement on August 19. “Today, I’ve signed into law first-of-their-kind safeguards in the Midwest for cryptocurrency and other digital assets.”
A clash over crypto regulation
The announcement drew a clear contrast between Illinois’ tighter regulatory approach and the Trump administration’s deregulatory stance. Earlier this year, Trump signed legislation overturning an IRS rule that would have classified decentralized exchanges as brokers — a move criticized by Democrats as weakening oversight.
The governor’s office highlighted FBI data showing Illinois ranks fifth in the nation for crypto-related fraud losses, with residents losing an estimated $272 million in 2024 alone. Pritzker argued that stronger safeguards were urgently needed to protect consumers from scams and risky practices.
What the new bills include
The first measure, the Digital Assets and Consumer Protection Act (SB1797), grants the Illinois Department of Financial and Professional Regulation (IDFPR) authority to oversee crypto exchanges and related firms. The law requires companies to:
- Disclose fee structures clearly
- Inform users whether their assets are insured
- Provide risk warnings, including the possibility of losing access to funds
The bill, introduced by Senator Mark Walker, passed the state Senate in April with majority support.
The second measure, the Digital Asset Kiosk Act (SB2319), targets operators of crypto ATMs. Under the new law, kiosk providers must register with the IDFPR, cap transaction fees at 18%, and limit new customers to $2,500 in daily transactions. Additionally, they must offer full refunds to first-time customers who are victims of scams.
Illinois’ mixed approach to crypto
Despite these new consumer protections, Illinois has not embraced cryptocurrency as enthusiastically as some other states. Earlier this year, lawmakers rejected a proposal (House Bill 1844) to create a “strategic Bitcoin reserve” for the state treasury. The bill, introduced in January by Rep. John Cabello, would have allowed Illinois to hold Bitcoin for five years and accept BTC donations, but it failed to advance beyond committee.
