Illinois Governor JB Pritzker took aim at U.S. President Donald Trump’s approach to digital assets on Monday while signing two new bills to regulate crypto activity in the state.
Key Takeaways:
Illinois passed two new laws tightening oversight of crypto exchanges and ATMs. Governor Pritzker criticized Trump’s deregulation, warning it leaves consumers vulnerable to fraud. The state acted after Illinois residents lost $272M to crypto scams in 2024, ranking fifth nationwide.“While the Trump Administration is letting crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” Pritzker said as he approved the legislation.
Crypto regulation has become a flashpoint in U.S. politics since Republicans secured a sweeping election victory in November.
US States Split on Crypto Policy
Republican-led states such as Texas and Arizona have embraced the industry, promoting policies to attract miners and exchanges, while Democratic states like Illinois are opting for tighter consumer safeguards.
Pritzker said Illinois would not “sit idle while fraudsters run rampant,” pointing to what he described as Washington’s lax oversight under Trump.
The first measure, the Digital Assets and Consumer Protection Act (SB 1797), gives the Illinois Department of Financial and Professional Regulation oversight authority over crypto businesses and trading platforms.
Passed by the Illinois Senate in April, the law requires exchanges to maintain sufficient financial reserves, enforce cybersecurity standards, implement anti-fraud controls, and provide clear investment disclosures comparable to traditional financial services.
“At a time when fraudsters continue to evolve, and consumer protections are being eroded at the federal level, Illinois is sending a clear message that we won’t tolerate taking advantage of our people and their hard-earned assets,” Pritzker said.
The second measure, the Digital Asset Kiosk Act (SB 2319), regulates cryptocurrency ATMs. It mandates that kiosk operators register with the state, issue refunds to scam victims, cap transaction fees at 18%, and restrict daily transactions to $2,500 for first-time customers.
Representative Edgar Gonzalez Jr. said the bill ensures “reliable, consistent safeguards, no matter the financial service.”
Illinois ranked fifth nationwide for crypto-related fraud losses in 2024, with residents losing around $272 million, according to the FBI. Lawmakers cited the sharp rise in scams as a driving factor behind the stricter rules.
The governor’s office continued its criticism of Trump, accusing the administration of “actively deregulating the crypto industry at a time when consumers are increasingly at risk of fraud.”
Officials highlighted Trump’s April move to overturn an IRS rule that broadened the definition of “broker” to include decentralized finance platforms.
Illinois Pushes Back on Pro-Crypto Measures
Illinois has signaled it is not aiming to become a pro-crypto hub. Earlier this year, lawmakers quickly rejected House Bill 1844, introduced by Representative John Cabello, which proposed creating a strategic Bitcoin reserve for the state treasury.
The measure, which would have directed Illinois to purchase and hold Bitcoin for five years, failed at the committee level.
In April,Illinois dropped its lawsuit against Coinbase over the exchange’s staking program, following the lead of three other U.S. states that have recently abandoned similar legal actions.
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