Pritzker Signs Two Bills into Law
On Monday, Illinois Governor J.B. Pritzker signed two groundbreaking bills into law, making Illinois the first state in the Midwest to introduce comprehensive crypto consumer protections. The Digital Assets and Consumer Protection Act (SB1797) and the Digital Asset Kiosk Act (SB2319) set strict new standards for crypto businesses and crackdown rules for crypto ATMs.
The move follows a wave of crypto fraud losses in Illinois, where residents lost more than $272 million in 2024, according to FBI data.
While Trump lets crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers.
— Governor JB Pritzker (@GovPritzker) August 18, 2025
Today, I've signed into law first-of-their-kind safeguards in the Midwest for cryptocurrency and other digital assets.
We won't tolerate fraudsters.
While Trump lets crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers.
— Governor JB Pritzker (@GovPritzker) August 18, 2025
Today, I've signed into law first-of-their-kind safeguards in the Midwest for cryptocurrency and other digital assets.
We won't tolerate fraudsters.
Stronger Oversight for Exchanges and Wallets
Under SB1797, the Illinois Department of Financial and Professional Regulation will gain new authority to oversee exchanges and wallet providers operating in the state. Businesses will be required to adopt cybersecurity safeguards, anti-fraud measures, and consumer protection standards.
State Senator Mark Walker, who introduced SB1797 in February, pushed the bill after mounting evidence of fraud. He cited losses of more than $163 million in 2023, saying that crypto-related scams had become “the most common form of financial crime in Illinois.”
Illinois ranked fifth in the nation for crypto-related complaints and fraud losses, trailing only California, Florida, Texas, and New York.
Clamping Down on Crypto ATMs
The second bill, SB2319, specifically targets crypto kiosks, which regulators say have become breeding grounds for scams. The law requires ATM operators to register with the state, caps transaction fees at 18%, and limits daily transactions for new customers to $2,500.
Perhaps most strikingly, the law mandates that operators issue full refunds to victims of scams. While some of these provisions take effect immediately, businesses have until July 1, 2027, to fully comply with registration requirements.
Illinois currently hosts around 1,482 crypto ATMs, slightly down from 1,687 in 2022, according to Coin ATM Radar.
Federal Crypto Regulation Backlash
Illinois’ move stands in sharp contrast to federal efforts, which critics argue lean toward deregulation. Pritzker blasted Washington’s hands-off stance, while other lawmakers, including Senator Elizabeth Warren (D-MA), have raised alarms about the risks.
Just last week, Warren accused the industry of writing its own rules, warning: “Newly passed crypto legislation supercharges President Trump’s corruption.” She said current restrictions were “weak, weak restrictions” that left the door open for use by “terrorists and drug traffickers.”
Banking groups have also voiced concern over the federal GENIUS Act, warning that loopholes could fuel massive deposit flight into yield-bearing stablecoins, threatening the traditional banking system.
Illinois Sets a Precedent for States
With these laws, Illinois positions itself as a national leader in crypto regulation, placing consumer safety ahead of unchecked market expansion. Pritzker emphasized that the laws are about protecting citizens from predatory schemes while still allowing innovation to flourish in a regulated environment.
The landmark move could spark a domino effect across other U.S. states, particularly as crypto-related fraud becomes more common nationwide. For Illinois residents, it means tougher safeguards, tighter ATM oversight, and new protections against scams that cost the state hundreds of millions each year.
