Illinois vs. Trump: Governor Pritzker Signs First Cryptocurrency Laws in the Midwest

Illinois Governor J. B. Pritzker has taken a sharp stance against President Donald Trump’s approach to cryptocurrencies. While, according to him, the White House allows “crypto bros” to shape federal policy, Illinois has become the first Midwestern state to introduce concrete measures aimed at protecting investors and consumers. “Trump lets the crypto bros write federal rules, while Illinois is passing common-sense laws,” Pritzker said on August 19 as he signed two new cryptocurrency bills.

Why Illinois Pushes for Regulation According to the governor’s office, action is necessary to combat the growing risk of fraud. Illinois highlighted that Trump’s administration in April signed legislation that repealed an IRS rule revision, which would have classified decentralized exchanges as brokers. Democrats cite this as evidence of active deregulation in the crypto sector. FBI records further show that in 2024 Illinois ranked fifth among U.S. states in crypto fraud-related losses — totaling $272 million.

What Do the Two New Laws Cover? 1️⃣ Digital Assets and Consumer Protection Act (SB1797) grants oversight of crypto companies to the Illinois Department of Financial and Professional Regulation (IDFPR)requires crypto firms to disclose their full fee structuresmandates transparency on whether user assets are insuredrequires clear disclosure of key risks, including the potential loss of access to funds The bill, introduced by Senator Mark Walker, passed the Illinois Senate in April with majority support.

2️⃣ Digital Kiosks Act (SB2319) regulates the operation of crypto ATMsrequires operators to register with the IDFPRobligates reimbursement for new customers who fall victim to kiosk-related fraudcaps transaction fees at 18%limits daily transactions for new customers to $2,500

Illinois and Crypto: A Cautious Stance While Illinois is now positioning itself as a pioneer in consumer protection for digital assets, it does not belong among the states most supportive of crypto adoption. Earlier this year, lawmakers rejected House Bill 1844, introduced by Republican John Cabello. The proposal sought to create a strategic Bitcoin reserve that the state treasury could purchase and hold for five years. It also included provisions for managing and securing the fund, as well as allowing Illinois residents to contribute directly in BTC. The bill, however, stalled in committee and never reached a full vote. Illinois is thus sending a clear signal: it doesn’t aim to become a hub for crypto experiments but rather a regulated environment that protects citizens from fraud and opaque practices. The clash between state-level consumer safeguards and Trump’s federal deregulation approach is likely to intensify further.

#CryptoRegulation , #bitcoin , #Ethereum , #Cryptolaw , #TRUMP

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“