Illinois Governor Approves Crypto Oversight Bills for Exchanges and ATMs

JB Pritzker, Illinois Governor, has signed two bills that are aimed at strengthening oversight of the crypto industry in the state. The Governor also criticized President Donald Trump on loosening the federal rules. He approved the Digital Assets and Consumer Protection Act (SB 1797) and the Digital Asset Kiosk Act (SB 2319). The goal of both of these legislations is to boost consumer safety in an industry that the governor calls “rife with fraud risks.”

Illinois Governor Approves Two Crypto Bills

The Digital Assets and Consumer Protection Act grants the Illinois Department of Financial and Professional Regulation direct authority over cryptocurrency exchanges and businesses. Under the law, crypto companies will be required to maintain sufficient financial reserves, implement cybersecurity and anti-fraud protections, provide transparent investment disclosures, and meet customer service standards similar to those governing banks and brokerages.

“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 during the signing ceremony.

The bill, which passed the state Senate in April, represents Illinois’ more cautious approach to digital assets compared to Republican-led states like Texas and Arizona, which have embraced looser regulatory frameworks.

Alongside the exchange-focused bill, Pritzker signed the Digital Asset Kiosk Act, which targets cryptocurrency ATMs, often seen as high-risk channels for fraud. The law requires kiosk operators to register with state regulators, offer full refunds to scam victims, cap transaction fees at 18%, and limit daily transactions to $2,500 for first-time customers.

“The people of Illinois deserve reliable, consistent safeguards, no matter the financial service they utilize for their hard-earned money,” said Representative Edgar Gonzalez Jr., who supported the measure.

The move follows concerning figures from the FBI, which reported that Illinois residents lost $272 million in crypto-related fraud cases in 2024, making the state the fifth-highest nationwide in losses.

The governor’s office also took aim at Trump’s handling of crypto regulation, accusing his administration of “actively deregulating the crypto industry at a time when consumers are increasingly at risk of fraud.” Officials pointed to Trump’s April signing of a bill overturning an IRS rule that broadened the definition of “broker” to include decentralized finance platforms.

Earlier this year, Illinois lawmakers also rejected a proposal to establish a state-run Bitcoin reserve. The bill, introduced by Representative John Cabello in January, sought to direct the state treasury to accumulate Bitcoin for five years as a strategic asset. It failed to advance past the committee stage. With these latest measures, Illinois positions itself as one of the most aggressive states in regulating digital assets, setting up a stark contrast with states that continue to court the industry with lighter-touch oversight.