- Illinois Governor J.B. Pritzker has signed two new laws that establish a consumer protection framework for digital assets, making Illinois the first state in the Midwest to do so.
- The laws give the state’s Department of Financial and Professional Regulation direct authority over crypto exchanges and businesses, requiring them to hold sufficient reserves and implement anti-fraud and cybersecurity measures.
- Pritzker framed the legislation as a countermeasure to what he called “eroded” consumer protections at the federal level under the Trump administration.
Illinois has enacted the Midwest’s first crypto-focused consumer protection framework after Governor JB Pritzker signed two pieces of legislation on Monday.
The Democratic governor positioned Illinois as a counterweight to Republican-led states such as Texas and Arizona, which have leaned toward aggressive industry promotion following Trump’s election win in November.
Related: Japan Set to Approve First Yen-Pegged Stablecoins in Q.4
“While the Trump Administration is letting crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” Pritzker said at the bill signing.
At a time when fraudsters continue to evolve and consumer protections are being eroded at the federal level, Illinois is sending a clear message that we won’t tolerate taking advantage of our people and their hard-earned assets.
Tightening Consumer Protection
The Digital Assets and Consumer Protection Act (SB 1797) gives the Illinois Department of Financial and Professional Regulation direct authority over crypto exchanges and related firms. The law obligates them to hold sufficient reserves, apply cybersecurity and anti-fraud protection mechanisms, provide disclosures, and follow customer service rules modeled on traditional finance.
IDFPR Secretary Mario Treto Jr. described the measures as “a monumental victory”:
These initiatives modernize consumer protection and implement safeguards for all Illinoisans who choose digital asset services. This is a monumental victory that prioritizes the safety and security of the people of Illinois, while also paving the way for a more transparent and accessible marketplace.
IDFPR Secretary Mario Treto, Jr. It’s worth noting that other lawmakers in Illinois floated an aggressive pro-Bitcoin measure earlier this year: House Bill 1844, which proposed creating a strategic state reserve of the asset, stalled in committee and has not moved forward.
Bitcoin is currently trading at US$112.9K (AU$174K), a 3% decrease in the last 24 hours, CoinGecko data shows.
Related: Centrifuge Surpasses US$1B TVL as Institutions Embrace Real-World Assets
The post Illinois Tightens Crypto Rules as Pritzker Slams Trump’s ‘Crypto Bros’ appeared first on Crypto News Australia.