Illinois Governor JB Pritzker has voiced strong concerns regarding the approach to cryptocurrency regulation under former President Donald Trump, particularly citing a perceived lack of consumer safeguards at the federal level. On August 18th, Governor Pritzker signed into law two new pieces of legislation aimed at providing greater oversight of the digital asset sector within Illinois. These measures are intended to shield consumers and investors from the increasing risks associated with fraud and scams involving digital currencies.
The first of these laws, known as the Digital Assets and Consumer Protection Act (SB 1797), empowers the Illinois Department of Financial and Professional Regulation to supervise digital asset exchanges and related businesses operating within the state. This law requires crypto firms to maintain sufficient financial reserves, implement robust cybersecurity defenses and anti-fraud protocols, and provide comprehensive investment disclosures to their customers. This initiative seeks to bring crypto services in line with the regulatory standards generally applied to traditional financial institutions, thus fostering a more reliable and transparent environment for consumers [3].
The second law, the Digital Asset Kiosk Act (SB 2319), specifically targets cryptocurrency kiosks, also known as ATMs, by establishing specific requirements for their operators. According to the new law, kiosk operators must register with state regulatory bodies, provide complete refunds to scam victims, limit transaction fees to a maximum of 18%, and restrict daily withdrawals for new customers to $2,500. These provisions are designed to reduce fraudulent activities and minimize the potential for substantial financial losses among unsuspecting users [4].
The need for heightened consumer protection is underscored by recent statistics from the FBI, which indicate that Illinois ranked fifth nationwide in reported losses related to crypto fraud in 2024, with losses exceeding $272 million. Furthermore, Illinois has witnessed a surge in the number of cryptocurrency kiosks—with over 1,000 located in Chicago alone—many of which have become hotspots for scams and illegal drug transactions [3].
Governor Pritzker directly criticized Trump’s policies, emphasizing what he described as a trend of federal deregulation. He specifically referenced Trump’s decision in April 2025 to approve a bill that repealed an IRS rule broadening the definition of a “broker” to encompass decentralized finance (DeFi) exchanges. Pritzker contended that this action has left consumers exposed to risks at a time when fraudulent activities are becoming increasingly prevalent [3].
The legislative actions in Illinois reflect a wider pattern of varying approaches to crypto regulation at the state level. Following the November 2024 elections, which resulted in Republican majorities in certain states, some states, such as Texas and Arizona, have taken a more welcoming stance towards the crypto industry, whereas others, including Illinois, have adopted a more cautious and regulatory approach. Pritzker emphasized that his administration is taking action to address what he perceives as the Trump administration’s failure to prioritize consumer protection [3].
These recent laws represent a shift from earlier initiatives within the state. In January 2025, Illinois Representative John Cabello introduced legislation aimed at creating a strategic Bitcoin reserve, but this proposal did not progress beyond the committee stage. The current bills, however, prioritize consumer protection rather than speculative investments, aligning with the administration’s broader objective of promoting financial security for its citizens [3].
The developments in Illinois contribute to the evolving regulatory landscape surrounding digital currencies in the United States. At the federal level, legislative proposals like the CLARITY Act are currently under consideration, aiming to clarify the classification of digital tokens. However, as demonstrated by the recent actions in Illinois, state-level initiatives are already shaping the future of crypto regulation and its practical application, especially concerning consumer interactions [1].
Source:
[1] title1 (https://www.pymnts.com/news/regulation/2025/washingtons-fall-agenda-puts-crypto-banking-rules-in-the-crosshairs/)
[2] title2 (https://www.cointribune.com/en/tag/crypto-regulation/)
[3] title3 (https://cointelegraph.com/news/illinois-governor-slams-trump-crypto-bros-signs-two-new-crypto-bills)
[4] title4 (https://www.thecentersquare.com/illinois/article_efb65ab5-d433-4cd1-93de-7cdcabdf5b3b.html)
[5] title5 (https://chicago.suntimes.com/2025/08/18/crypto-jb-pritzker-donald-trump-digital-currency-cryptocurrency-scam-illinois)