The Governor of Illinois signs first-in-MID-MIDWEST Crypto laws for consumer protection

Illinois became the first State in the Midwest that passed extensive guarantees for crypto users on Monday, while Governor JB Pritzker signed two bills aimed at curbing fraud in a market where residents lost more than a quarter of a billion dollars last year.

“While the Trump administration lets crypto-brittle write federal policy, Illinois implements common sense protection for investors and consumers,” said Pritzker in a Monday statement.

The Digital Assets and Consumer Protection Act (SB1797) and the Digital Asset Kiosk Act (SB2319) were signed after months of debate in Springfield.

Together they draw up new rules for digital activity companies and impose restrictions on Crypto money machines, whereby scams are increasingly common.

Both bills were fully sponsored by Democratic legislators.

Illinois’ New Crypto Framework

The new framework offers the Illinois Department of Financial and Professional Regulation Authority to supervise exchanges and portfolio providers, while companies are obliged to adopt cyber security guarantees, anti-fraud measures and basic standards for consumer services.

Senator Senator Mark Walker introduced SB1797 for the first time in February, with the legislation gaining the Momentum in April when the Executive Committee of the Senate of Illinois passed it in an 8-4 votes.

Walker at the time just mentioned more than $ 163 million losses in 2023 that the inhabitants of Illinois alone lost more than $ 163 million in 2023.

The FBI reported that in 2024 residents of Illinois lost $ 272 million to crypto-fraud, with 4,657 crypto-related complaints, making it the most common form of financial crime in the state.

The state is also in fifth place in the nation for complaints and losses of crypto fraud, behind only California, Florida, Texas and New York.

Crypto Kiosk performance

SB2319 requires that ATM operators register with state rulers, CAP transaction costs at 18%, the daily transactions for new customers limit to $ 2,500 and deliver full reimbursements to victims of scams.

Some provisions, including reimbursements from KIOSK, come into effect immediately, while companies have until 1 July 2027 to register with the state.

Illinois is currently organizing around 1,482 Crypto money machines, an increase of approximately 1,687 in 2022, with installations that start in 2014, according to Coin ATM radar.

Federal Crypto legislation for return

The statement of the governor quoted federal deregulation -efforts and reduced supervision of crypto companies under the Trump administration.

Senator Elizabeth Warren (D-MA) warned last week that newly adopted crypto legislation “Supercharges President Trump’s corruption”, referring to the crypto-business business benefits of his family of billions in foreign support.

Warren accused the crypto industry of writing its own regulatory framework and called current federal limitations “weak, weak limitations” that make use possible by “terrorists and drug traders”.

Bank groups also pushed back against the recently established Genius Act, recently the congress about meshes warned that a massive deposit flight of traditional banks was able to activate to load -bearing Stablecoins.