Illinois Governor J.B Pritzker criticized Trump for letting “crypto bros” write federal policy as he passes two new crypto-related bills in the Democratic stronghold state.
- Illinois Governor just passed two crypto consumer protection bills which regulate crypto businesses and crypto ATMs or kiosks.
- Governor J.B Pritzker slams Trump administration for letting “crypto bros” direct government policy.
- The state had rejected a bill calling for the formation of a strategic Bitcoin reserve earlier this year.
In a recent press release, Illinois Governor Pritzker has enacted two new bills that would become the first crypto consumer protections in the Midwest. In his opening remarks, he criticizes President Trump for allowing “crypto bros” to write federal policy.
“While Trump lets crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” said Prtizker in his latest post on August 19.
“Today, I’ve signed into law first-of-their-kind safeguards in the Midwest for cryptocurrency and other digital assets,” he continued.
The state also used the opportunity to spotlight the Trump administration’s signing of a bill in April that overturned a revised rule from the Internal Revenue Service which categorized decentralized exchanges under broker.
The governor’s office cited this as proof that the Trump administration has “actively deregulated the crypto industry at a time when consumers are increasingly at risk of fraud.”
In terms of nationwide losses in crypto fraud, Illinois is ranked in fifth place as the state with around $272 million in losses according to the FBI’s records in 2024.
What do the two Illinois crypto bills entail?
The Digital Assets and Consumer Protection Act or SB1797 establishes regulatory oversight over cryptocurrencies. This bill would grant the Illinois Department of Financial and Professional Regulation or IDFPR the authority to regulate and supervise crypto exchanges and other crypto-related firms.
The bill was first introduced by Senator Mark Walker, and obtained a majority vote in the Illinois Senate on April 10. SB1797 mandates crypto companies to lay out their full fee structure, inform users whether their assets are insured, and explain key risks, including the possibility of losing access to funds.
Meanwhile, the second bill, The Digital Asset Kiosk Act or SB2319, regulates digital asset kiosk operators or crypto ATMs.
One of the requirements include registering with IDFPR, providing full refunds to new customers who are scam victims at kiosks, as well as capping transaction fees at 18%. The bill would also aim to limit daily transactions to $2,500 for new customers.
What is Illinois’ stance on crypto?
Despite claims from the government, Illinois is not one of the most pro-crypto states. Earlier this year, the Illinois state government shot down a bill suggesting it invest in crypto through a strategic Bitcoin (BTC) reserve.
The House Bill 1844 was introduced by Rep. John Cabello in January. The bill aimed to create a strategic Bitcoin reserve for the state treasury to buy and hold the asset for five years. In addition, the bill includes language on managing and securing the fund, reporting on fund status. It would have also allowed Illinois residents to make donations in BTC to the State’s fund.
Unfortunately, the bill failed to pass the voting round at just the Committee level.
