Illinois Stands Up for Crypto Consumers as Trump’s Deregulation Fails

Illinois Governor JB Pritzker has taken a sharp critique of President Donald Trump’s approach to cryptocurrency, emphasizing what he called the lack of federal consumer protections. On August 18, Pritzker signed two bills aimed at regulating the crypto industry within the state. These measures are designed to safeguard consumers and investors amid rising concerns over fraud and scams involving digital assets.

The first bill, the Digital Assets and Consumer Protection Act (SB 1797), grants the Illinois Department of Financial and Professional Regulation authority to oversee digital asset exchanges and related businesses. This legislation mandates that crypto companies must maintain adequate financial resources, implement robust cybersecurity and anti-fraud measures, and disclose necessary investment information. It aligns crypto services with the regulatory standards typically applied to traditional financial institutions, ensuring a more transparent and secure environment for consumers [3].

The second bill, the Digital Asset Kiosk Act (SB 2319), focuses on cryptocurrency kiosks or ATMs, imposing specific requirements on operators. Under the law, kiosk operators must register with state regulators, offer full refunds to victims of scams, cap transaction fees at 18%, and limit daily withdrawals for new customers to $2,500. These safeguards aim to curb fraudulent activity and mitigate the risk of large financial losses for unsuspecting users [4].

The need for such protections is underscored by recent data from the FBI, which reported that Illinois ranked fifth in the United States for crypto-related fraud losses in 2024, with over $272 million reported. The state has also seen an influx of crypto kiosks—over 1,000 in Chicago alone—many of which have become focal points for scams and drug-related transactions [3].

Governor Pritzker’s criticisms of Trump’s approach were explicit. He highlighted what he described as a pattern of federal deregulation, particularly pointing to Trump’s April 2025 decision to sign a bill overturning an IRS rule that expanded the definition of a “broker” to include decentralized finance exchanges. This move, Pritzker argued, has left consumers vulnerable at a time when fraud is increasingly prevalent [3].

The legislative push in Illinois reflects broader state-level divergences in crypto policy. Following the November 2024 election, where Republicans secured a majority, some states like Texas and Arizona have embraced the industry more enthusiastically, while others, such as Illinois, have adopted a more cautious stance. Pritzker emphasized that his administration was acting to fill the void left by what he called the Trump administration’s neglect of consumer protection [3].

The new laws also mark a departure from earlier efforts in the state. In January 2025, Illinois Representative John Cabello proposed a bill to create a strategic Bitcoin reserve, but the measure failed to advance beyond the committee stage. The current bills, however, focus on consumer protections rather than speculative investments, aligning with the administration’s broader goal of promoting financial security [3].

These developments in Illinois add to a growing regulatory landscape as the U.S. debates the future of crypto policy. At the federal level, key legislative efforts such as the CLARITY Act are under review, aiming to clarify the classification of digital tokens. However, as seen in Illinois, state-level actions are already shaping the contours of how crypto is regulated and used, particularly in consumer-facing contexts [1].

Source:

[1] title1 (https://www.pymnts.com/news/regulation/2025/washingtons-fall-agenda-puts-crypto-banking-rules-in-the-crosshairs/)

[2] title2 (https://www.cointribune.com/en/tag/crypto-regulation/)

[3] title3 (https://cointelegraph.com/news/illinois-governor-slams-trump-crypto-bros-signs-two-new-crypto-bills)

[4] title4 (https://www.thecentersquare.com/illinois/article_efb65ab5-d433-4cd1-93de-7cdcabdf5b3b.html)

[5] title5 (https://chicago.suntimes.com/2025/08/18/crypto-jb-pritzker-donald-trump-digital-currency-cryptocurrency-scam-illinois)