With millions lost from crypto fraud in Illinois, a new account wants to tighten the regulations in the digital assets space.
On Thursday, the Illinois Senate Executive Committee approved Senate bill 1797, the Digital Assets and Consumer Protection Act, which wants to regulate digital asset companies in the State.
The bill, first introduced in February by the state of Senator Mark Walker (D-Arlington Heights), aims to tackle the increasing problem of crypto fraud, which led to more than $ 163 million in losses in Illinois only in 2023, according to a Thursday statement.
“The rise of digital assets has opened the door for financial opportunities, but also for bankruptcy, fraud and misleading practices,” said Walker, adding that “we have to set standards for those who have evolved in the crypto -business to ensure that they are credible, honest actors.”
The bill, which was adopted in 8-4 votes, now goes to the entire Senate for consideration. If approved, it goes to the House of Representatives for further consultations before it is sent to Governor JB Pritzker for definitive approval.
The legislation designates the Illinois Department of Financial and Professional Regulation (IDFPR) as the primary regulatory authority that supervises the activities of digital activa companies.
Such companies will have to register with IDFPR, the provision of necessary disclosures and demonstrating their financial stability to guarantee the protection of consumers
An important provision of the bill requires that companies implement guarantees for customer assets to prevent fraud and mismanagement.
Since the introduction in February, various senators from the State later added their support as co-sponsors to SB1797: Senator Karina Villa on March 18, Senator Rachel Ventura on March 19 and Senator Michael Hastings, Linda Holmes and Christopher Belt on March 20.
Illinois and Crypto
With this new push, Illinois takes strict steps to ensure that the state consumers are protected in the crypto space.
In February, Senator Dick Durbin introduced the Crypto ATM -Fraud Prevention Act to protect consumers, in particular seniors, against fraud with crypto money machines.
The bill would enforce transaction limits and require operators to offer repayments to victims who report fraud within 30 days.
In the meantime, at the national stage, Huis Financial Services Committee Chairman French Hill (R-AR) recently said that President Donald Trump’s personal crypto transactions have complicated the drafting of legislation for the crypto sector.
Daily debrief Newsletter
Start every day with the top news stories at the moment, plus original functions, a podcast, videos and more.
