Illinois Governor JB Pritzker signed two new laws on Monday, regulating cryptocurrency in the state, while criticizing U.S. President Donald Trump for letting “crypto bros” shape federal policy.
“While the Trump Administration is letting crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” Pritzker said in Springfield.
The term “crypto bros” is often used to describe aggressive, high-risk cryptocurrency enthusiasts, mostly young men, who push crypto adoption quickly, sometimes prioritizing profits over regulation or consumer protection.
New Rules for Crypto Exchanges
The first law, the Digital Assets and Consumer Protection Act (SB 1797), gives the Illinois Department of Financial and Professional Regulation authority over crypto exchanges, which are online platforms where people buy, sell, or trade digital currencies.
The act mandates companies to maintain sufficient reserves, enhance cybersecurity, combat fraud and provide transparent disclosures like banks.
Limits on Bitcoin ATMs
The second, the Digital Asset Kiosk Act (SB 2319), is a regulation of cryptocurrency kiosks, also known as Bitcoin ATMs. It needs operators to be registered with the state, reimburse scam victims, limit fees to 18%, and restrict new users to $2,500 daily transactions.
Illinois, a Democratic-led state, is taking a cautious approach while Republican states like Texas and Arizona have embraced crypto growth. The state ranked fifth nationwide for crypto fraud losses in 2024, with residents losing about $272 million, according to FBI data.
Earlier this year, lawmakers also rejected a bill proposing a strategic Bitcoin reserve for the state treasury, signaling Illinois’ reluctance to treat the world’s biggest cryptocurrency as an official investment.
The new measures will help Illinois to become a state that is more focused on consumer safety than on the fast crypto growth.
Also Read: Wisconsin Introduces Bill Requiring Full KYC for Bitcoin ATM Use
