Illinois Enacts Pioneering Crypto Regulations Amid Rising Scams

Illinois has positioned itself as a regulatory leader in digital asset oversight with Governor JB Pritzker signing two landmark bills. The Digital Assets and Consumer Protection Act (SB1797) establishes comprehensive oversight of crypto businesses, mandating financial safeguards and anti-fraud measures akin to traditional finance. Simultaneously, the Digital Asset Kiosk Act (SB2319) imposes strict rules on crypto ATMs—including 18% fee caps, $2,500 daily limits for new users, and mandatory fraud refunds—with some provisions taking immediate effect.

These Midwest-first laws respond to escalating crypto scams, requiring exchanges to register with the Illinois Department of Financial and Professional Regulation (IDFPR) and disclose all kiosk locations. The legislation notably contrasts with federal deregulation trends under the TRUMP administration, signaling a state-level push for consumer protections in volatile digital markets.