Illinois Governor Signs First-in-Midwest Crypto Consumer Protection Laws

Illinois Governor J.B. Pritzker enacted two landmark bills targeting cryptocurrency fraud, positioning the state as a regulatory leader in the Midwest. The Digital Assets and Consumer Protection Act (SB1797) grants regulators oversight of crypto exchanges and mandates anti-fraud measures, while the Digital Asset Kiosk Act (SB2319) imposes registration requirements on ATM operators, enforces an 18% fee cap, and mandates refunds for scam victims.

The move comes amid a surge in crypto-related losses, with Illinois residents reporting over $250 million in damages last year. "While the federal government lags, Illinois is implementing common-sense investor protections," Pritzker stated, taking a swipe at perceived federal inaction. The laws follow a 12% reduction in the state's crypto ATM count since 2022, now standing at 1,482 machines.

Democratic lawmakers spearheaded the legislation after months of debate, creating a regulatory framework that exceeds current federal standards. The measures specifically address growing concerns around crypto kiosk scams, which have proliferated alongside the sector's expansion.