Illinois Leads the Way in Crypto Regulation
On August 18, 2025, Governor J.B. Pritzker made Illinois the first state in the Midwest to implement comprehensive safeguards for cryptocurrency users by signing the Digital Assets and Consumer Protection Act (SB1797) and the Digital Asset Kiosk Act (SB2319) into law. These measures aim to curb fraud and establish clear standards in the increasingly complex world of cryptocurrency.
A Response to Mounting Crypto Fraud
Illinois residents reportedly lost over $272 million to cryptocurrency scams in 2024, making crypto-related fraud the most common financial crime in the state. The state also ranks fifth nationally for crypto fraud losses, trailing behind California, Florida, Texas, and New York. With these alarming figures in focus, the bipartisan effort introduces much-needed accountability and security measures for digital asset users.
Highlights of the New Laws
The Digital Assets and Consumer Protection Act empowers the Illinois Department of Financial and Professional Regulation (IDFPR) to oversee cryptocurrency exchanges and digital wallet providers, requiring companies to meet rigorous cybersecurity, anti-fraud, and consumer protection standards.
The Digital Asset Kiosk Act, meanwhile, imposes regulations on cryptocurrency ATMs, including:
- Mandatory registration with the state
- Capping transaction fees at 18%
- Limiting transaction amounts for new users to $2,500 per day
- Issuing refunds to victims of scams
Some provisions take immediate effect, while businesses have until July 1, 2027, to comply with registration requirements.
Why This Matters
Governor Pritzker has openly criticized the federal government’s lax stance on cryptocurrency regulation, referring to the Trump administration’s policies as letting “crypto bros write federal policy.” He emphasized the importance of these new laws in protecting Illinois consumers and preventing financial crimes.
These measures are especially vital given Illinois’s prominence in the crypto economy, with approximately 1,482 active cryptocurrency ATMs as of 2025. Although this number has slightly decreased from 1,687 in 2022, regulatory oversight is expected to foster a more secure environment for legitimate users.
Looking Ahead
As cryptocurrency continues to rise in popularity, the Illinois model could serve as a blueprint for other states looking to safeguard their residents in an unregulated digital era. Public commentary suggests that these measures benefit mainstream adoption by ensuring trust and security in a volatile market.
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