Bitcoin News Today: Illinois Stands Against Crypto Chaos, Builds Statewide Safeguards

Illinois Governor JB Pritzker has taken a firm stance against what he described as the Trump administration’s pro-crypto industry approach, signing two significant pieces of legislation aimed at regulating digital assets within the state. The moves came as Pritzker criticized the federal government for allowing "crypto bros" to shape policy, emphasizing Illinois’ commitment to protecting investors and consumers through a more regulated approach. The legislation, known as the Digital Assets and Consumer Protection Act (SB 1797) and the Digital Asset Kiosk Act (SB 2319), introduces comprehensive oversight of digital asset exchanges, businesses, and kiosks within Illinois [1].

The first law, the Digital Assets and Consumer Protection Act, grants the Illinois Department of Financial and Professional Regulation the authority to regulate digital asset exchanges and related businesses. It mandates that crypto firms maintain sufficient financial resources, implement cybersecurity and anti-fraud measures, and adhere to customer service standards akin to traditional financial services. This aligns with Pritzker’s assertion that Illinois is stepping in to protect consumers at a time when the federal government appears to be rolling back protections [1]. The bill passed in April and received final approval from the governor in August.

Complementing this, the Digital Asset Kiosk Act targets cryptocurrency ATMs and kiosks, requiring operators to register with state regulators. The law also enforces a cap on transaction fees at 18% and sets a daily transaction limit of $2,500 for new customers. Additionally, the legislation mandates full refunds for victims of scams involving crypto kiosks. Representative Edgar Gonzalez Jr. emphasized the need for consistent safeguards, stating that Illinois residents deserve reliable protections regardless of the financial services they use [1].

Illinois’ legislative efforts come amid growing concerns about crypto-related fraud. In 2024, the state reported $272 million in losses from crypto scams, placing it fifth nationally in such cases according to the FBI. Pritzker’s administration has consistently criticized the Trump administration for deregulating the crypto industry, citing the federal policy shift that overturned the IRS’s broader definition of a broker to include decentralized finance exchanges [1]. These regulatory differences highlight a broader national divide, with some states embracing crypto innovation while others, like Illinois, take a more cautious and protective approach.

Illinois’ legislative strategy stands in contrast to Texas, which has taken a pro-crypto stance through various initiatives, including the establishment of a strategic Bitcoin reserve and the creation of the Texas Business Courts to handle complex business disputes involving digital assets. These moves reflect a deliberate effort to position Texas as a business-friendly hub for the digital asset economy [5]. Illinois, however, has not followed suit, having rejected a similar proposal to create a state-managed Bitcoin reserve earlier this year. The rejected bill, House Bill 1844, had aimed to create a strategic Bitcoin reserve for the state treasury [1].

Governor Pritzker’s actions underscore Illinois’ commitment to consumer protection, particularly as the crypto industry continues to evolve. The state’s regulatory framework now includes specific oversight of digital asset exchanges, kiosks, and consumer protections, distinguishing it from states that prioritize regulatory flexibility. With the Trump administration pushing for a pro-crypto policy at the federal level, Illinois’ approach reflects a broader political and ideological divergence in how states are choosing to manage the risks and opportunities associated with digital assets.

Source: [1] Illinois governor blasts Trump's 'crypto bros' in new bill ... (https://cointelegraph.com/news/illinois-governor-slams-trump-crypto-bros-signs-two-new-crypto-bills) [2] Illinois quick hits: Pritzker signs crypto regulations (https://www.thecentersquare.com/illinois/article_efb65ab5-d433-4cd1-93de-7cdcabdf5b3b.html) [3] Rural North Texans continue push for vote to regulate ... (https://www.keranews.org/news/2025-08-18/north-texas-hood-county-vote-incorporate-bitcoin-mine) [4] Bitcoin is money, not just an asset (https://www.bankingriskandregulation.com/bitcoin-is-money-not-just-an-asset/) [5] The TeX Factor For Traditional And Digital Asset Businesses (https://www.forbes.com/sites/joshuasmeltzer/2025/08/18/the-tex-factor-for-traditional-and-digital-asset-businesses/) [6] Crypto Tax Update: New Tax Rules on the Horizon? (https://www.winston.com/en/blogs-and-podcasts/tax-impacts/crypto-tax-update-new-tax-rules-on-the-horizon)