Illinois Governor J.B. Pritzker has signed a package of crypto bills into law, establishing consumer protections and regulations for the digital asset industry in the state. In a statement, he contrasted Illinois’s approach with what he called a “hands-off” federal policy, stating the state would not tolerate fraud.
On Monday, Illinois Governor JB Pritzker signed two new measures to regulate crypto activity in the state, which he aimed at U.S. President Donald Trump’s approach to digital assets.
Pritzker stated, “Illinois is enacting common-sense safeguards for investors and consumers, while the Trump Administration permits crypto bros to formulate federal policy.”
A flashpoint in U.S. politics has emerged due to the Republicans’ comprehensive election victory in November: crypto regulation.
US States Split on Crypto Policy
Republican-led states, including Arizona and Texas, have embraced the industry by promoting policies that will attract miners and exchanges. Conversely, Democratic states like Illinois are opting for more stringent consumer protections.
Pritzker asserted that Illinois would not “sit idly by while fraudsters run rampant,” alluding to the lack of supervision in Washington under Trump.
The Digital Assets and Consumer Protection Act (SB 1797) is the initial measure that grants the Illinois Department of Financial and Professional Regulation oversight authority over crypto businesses and trading platforms.
The Illinois Senate passed the law in April, which mandates that exchanges maintain adequate financial reserves, enforce cybersecurity standards, implement anti-fraud controls, and provide transparent investment disclosures comparable to those for traditional financial services.
According to Pritzker, Illinois is sending a clear message that we will not tolerate exploiting our people and their hard-earned assets, as fraudsters continue to evolve and consumer protections are being eroded at the federal level.
The second measure, the Digital Asset Kiosk Act (SB 2319), governs cryptocurrency ATMs. It is required that kiosk operators register with the state, issue refunds to scam victims, set transaction fees at 18%, and limit daily transactions to $2,500 for first-time customers.
Representative Edgar Gonzalez Jr. stated that the measure guarantees “consistent, dependable safeguards, regardless of the financial service.”
According to the FBI, Illinois residents suffered approximately $272 million in crypto-related fraud losses in 2024, placing the state fifth nationwide. The stricter regulations were ascribed to the significant increase in schemes by lawmakers.
The governor’s office criticized Trump, accusing the administration of “actively deregulating the crypto industry at a time when consumers are increasingly at risk of fraud.”
Officials emphasized Trump’s April decision to revoke an IRS regulation that expanded the definition of “broker” to encompass decentralized finance platforms.
Illinois Opposes Pro-Crypto Measures
Illinois has indicated that it does not intend to establish itself as a pro-crypto center. Representative John Cabello’s House Bill 1844, which was introduced earlier this year, proposed the establishment of a strategic Bitcoin reserve for the state treasury. However, legislators promptly rejected the bill.
The measure, which would have mandated Illinois to acquire and maintain Bitcoin for five years, was unsuccessful at the committee level.
Illinois abandoned its lawsuit against Coinbase in April, following the example of three other U.S. states that have recently abandoned comparable legal actions. The litigation was related to the exchange’s staking program.
