Illinois Signs Cryptocurrency Consumer Protection Bill

PANews reported on August 19th that according to Decrypt, Illinois Governor JB Pritzker signed the Digital Asset and Consumer Protection Act (SB1797) and the Digital Asset Self-Service Kiosk Act (SB2319), becoming the first state in the Midwest to implement comprehensive cryptocurrency user protection measures. The new laws empower state regulators to oversee exchanges and wallet providers, while requiring businesses to implement cybersecurity and anti-fraud measures and setting consumer service standards.

SB2319 also mandates registration for cryptocurrency ATM operators, caps transaction fees at 18%, limits daily transactions for new users to $2,500, and provides full refunds to victims of scams. Some provisions take effect immediately, requiring businesses to complete registration by July 1, 2027. The governor criticized the Trump administration for allowing the crypto industry to set federal policy and emphasized the importance of state legislation for investor and consumer protection. Data shows that Illinois residents lost $272 million to cryptocurrency scams in 2024, ranking fifth nationwide in the number of related complaints.