On Monday, Illinois took a significant step forward, enacting two pivotal laws aimed at enhancing consumer protections and establishing better regulation for cryptocurrency enterprises across the state.
The governor utilized this landmark occasion to express concern over recent actions by federal leadership, specifically criticizing measures that seem to weaken consumer safeguards.
Empowering State Regulators
The recently passed SB 1797 grants the Illinois Department of Financial and Professional Regulation increased powers to oversee digital asset exchanges and associated entities.
“While federal initiatives may create loopholes benefitting the few, here in Illinois, we are prioritizing the well-being of our investors and consumers,” stated Governor JB Pritzker.
While federal policies may be compromised, Illinois is taking action to secure common-sense protections for those investing in cryptocurrency.
This legislation marks a significant milestone for consumer safety measures concerning digital assets.
Fraudulent activities will not be tolerated.
— Governor JB Pritzker (@GovPritzker) August 18, 2025
With this law, companies are now obligated to maintain sufficient funds, implement robust cybersecurity and fraud prevention systems, clearly outline investment risks, and adhere to service standards akin to traditional financial sectors.
This legislation, having passed the state Senate earlier this year, clarifies regulatory responsibilities, ensuring enhanced oversight over the cryptocurrency industry.
New Kiosk Regulations to Prevent Fraud
Additionally, the second law, SB 2319, specifically addresses the operational protocols for cryptocurrency kiosks and ATMs. The statute outlines several essential regulations: kiosk operators must register with state authorities, victims of fraud should receive full transaction refunds, fee limits are capped at 18%, and first-time users will face a transaction ceiling of $2,500.
These provisions are crafted to deter fraudulent actors while providing consumers easy recourse in case of scams. State representatives and public advocates argue these changes are long overdue.
A Clear Political Distinction
In his remarks during the signing, Pritzker emphasized the differences between state-level initiatives and federal approaches. He pointed out how recent federal policies seem to favor industry participants at the expense of consumer safety.
“As precursors of fraud continue to become more sophisticated and federal regulations appear to shrink, Illinois is steadfast in its mission to protect our residents from exploitation,”
He positioned this legislation as a proactive measure against rising fraud and indicated that federal regulatory trends seem more accommodating to financial industry interests rather than to the average consumer.
Image sourced from ABC News; chart provided by TradingView
