Bitcoin News Today: Illinois Ranks Crypto Safeguards Amid Rising Scam Losses

Illinois Governor JB Pritzker has enacted two landmark pieces of legislation aimed at enhancing oversight and consumer protection within the cryptocurrency sector. The Digital Assets and Consumer Protection Act (SB 1797) and the Digital Asset Kiosk Act (SB 2319) represent the state’s first comprehensive measures to regulate digital asset exchanges and kiosk operations. These laws position Illinois as a leader in the Midwest in implementing safeguards for digital asset transactions.

Under SB 1797, the Illinois Department of Financial and Professional Regulation (IDFPR) is granted authority to supervise digital asset exchanges and businesses. The law mandates that crypto companies maintain adequate financial resources, implement robust cybersecurity and anti-fraud measures, and adhere to customer service standards comparable to traditional financial institutions. Additionally, firms are required to disclose investment risks and safeguard customer assets, aligning them with existing regulations for conventional financial services [1].

The Digital Asset Kiosk Act (SB 2319) introduces specific regulations for cryptocurrency kiosks or ATMs. Operators must register with IDFPR, provide full refunds to scam victims, and cap transaction fees at 18%. The legislation also imposes a daily transaction limit of $2,500 for new users, aiming to prevent excessive losses from fraudulent activities. These provisions are intended to ensure consistency in consumer protections across all financial services [2].

The timing of these legislative actions follows significant losses due to crypto fraud in the state. In 2024, Illinois reported $272 million in losses from crypto-related scams, ranking fifth highest nationwide according to the FBI. Governor Pritzker criticized the Trump administration for its approach to crypto regulation, noting that federal deregulation has left consumers more vulnerable to fraud. Specifically, the administration overturned a revised IRS rule that had expanded the definition of a broker to include decentralized exchanges [3].

While Illinois has taken a firm stance on regulating digital assets, it has not pursued a more crypto-friendly approach in all areas. Earlier in 2025, the state rejected a proposal to establish a strategic Bitcoin reserve. House Bill 1844, introduced by Representative John Cabello, aimed to create a state treasury fund to purchase and hold Bitcoin for five years. However, the bill failed to gain approval in the committee stage [4].

The new laws reflect a broader trend of state-level policy divergence in the U.S., with states like Texas and Arizona favoring more open crypto markets while others, such as Illinois, prioritize regulatory oversight. The legislation is expected to provide a framework for responsible crypto operations and foster public confidence in the sector, ensuring that innovation is balanced with consumer protection [5].

Source: [1] Governor JB Pritzker (https://cointelegraph.com/news/illinois-governor-slams-trump-crypto-bros-signs-two-new-crypto-bills) [2] Gov.Pritzker Newsroom (https://gov-pritzker-newsroom.prezly.com/gov-pritzker-signs-historic-legislation-to-protect-consumers-from-cryptocurrency-scams) [3] Crypto News (https://crypto.news/illinois-goverrnor-slams-trump-and-passes-two-new-crypto-bills/) [4] Bitcoin Laws (https://cointelegraph.com/news/illinois-governor-slams-trump-crypto-bros-signs-two-new-crypto-bills) [5] Crypto News (https://crypto.news/illinois-goverrnor-slams-trump-and-passes-two-new-crypto-bills/)