Illinois Tightens Cryptocurrency Oversight with Dual Regulatory Laws

Illinois has escalated its regulatory grip on cryptocurrency operations with Governor JB Pritzker enacting two pivotal laws. The Digital Assets and Consumer Protection Act (SB 1797) empowers the state's Department of Financial and Professional Regulation to directly oversee crypto firms and exchanges, mandating financial resilience, cybersecurity protocols, and investor disclosures akin to traditional finance. Simultaneously, the Digital Asset Kiosk Act (SB 2319) imposes registration, live customer support, and fraud prevention requirements on crypto ATM operators, capping new-user transactions at $2,500 daily.

These measures reflect a broader trend of state-level crypto regulation aiming to balance innovation with consumer protection. While no specific coins or exchanges are named in the legislation, the rules will impact all market participants operating in Illinois, from Bitcoin (BTC) and ethereum (ETH) traders to localized kiosk networks.