Gov. Pritzker Signs Historic Legislation to Protect Consumers from Cryptocurrency Scams

CHICAGO - Building on efforts to increase consumer protections for the people of Illinois, Governor JB Pritzker today signed two bills that create first-of-their-kind safeguards in the Midwest for cryptocurrency and other digital assets. The Digital Assets and Consumer Protection Act (SB1797) protects Illinoisans by establishing regulatory oversight of cryptocurrencies, while the Digital Asset Kiosk Act (SB2319) creates specific protections against scams and fraud for consumers who utilize digital asset kiosks. Both measures are needed to protect consumers in Illinois, as more people are falling victim to scams involving cryptocurrency. According to the FBI, Illinois consumers lost $272 million in fraud cases involving cryptocurrency in 2024, representing the most common type of financial fraud in the past year.

“While the Trump Administration is letting crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” said Governor JB Pritzker. “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.” ​

The Digital Assets and Consumer Protection Act (SB1797) grants Illinois Department of Financial and Professional Regulation (IDFPR) authority to regulate and supervise digital asset exchanges and other digital asset businesses. The legislation also creates strong customer protections in line with those that currently apply to traditional financial services, such as investment disclosures, customer asset safeguards, and customer service standards. Companies in the digital asset marketplace will be required to hold adequate financial resources to operate effectively and have plans and procedures for addressing critical risks, including cybersecurity, fraud, and money laundering, consistent with regulations for traditional financial services.

“These initiatives modernize consumer protection and implement safeguards for all Illinoisans who choose digital asset services,” said IDFPR Secretary Mario Treto, Jr. “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.”

The Digital Asset Kiosk Act (SB2319) places new requirements on digital asset kiosk operators. For example, they must register with IDFPR, provide reports that detail all kiosk locations, and provide full refunds to new customers who are victims of scams at kiosks. Transaction fees are also capped at 18% at the kiosks, as are daily transaction amounts ($2,500) for new customers.

Both measures are rooted in protecting consumers from harmful practices and bankruptcies seen in the digital asset industry. This legislation puts consumers first, while allowing responsible businesses to continue to operate in Illinois and offer innovative financial products with clear guardrails. This legislation contains commonsense exemptions for technology development to promote innovation in Illinois.

By contrast, the Trump Administration has actively deregulated the crypto industry at a time when consumers are increasingly at risk of fraud, including stripping the Internal Revenue Service (IRS) of its ability to regulate decentralized crypto brokers. Federal legislation on digital assets has largely been driven by industry lobbying efforts and prioritizes industry preferences for limited regulatory oversight over consumer protections and prohibitions against conflicts of interest in the industry.

“This bill centers on protecting consumers and investors, while also supporting companies working in the crypto space. It aims to keep bad actors out of the market and ensure that Illinois remains a leader in high-tech innovation,” said Sen. Mark Walker (D-Arlington Heights). “Illinois is a leader in high-tech innovation and start-ups. By protecting consumers, we will also help foster growth for these entrepreneurs by building public confidence in the legitimacy of cryptocurrencies.”

“The people of Illinois deserve reliable, consistent safeguards, no matter the financial service they utilize for their hard-earned money,” said Rep. Edgar Gonzalez, Jr. (D-Chicago). “I’m proud to have partnered with IDFPR on this legislation that both protects consumers and provides credibility to businesses seeking to enter the digital asset marketplace and provide legitimate services to consumers.”

“This legislation ensures that Illinois residents are protected through strong scam prevention measures, such as placing disclosures on kiosks and putting safeguards in place to prevent new users from losing their life savings,” said Sen. Laura Ellman (D-Naperville). “We’re taking a responsible step to put consumer protection first in the state. Basic consumer protections in the cryptocurrency space are lacking, and regulatory frameworks are crucial for holding operators accountable and keeping consumer dollars secure. This measure addresses areas in the virtual currency market vulnerable to fraud and empowers Illinois consumers to make informed investments.”

"It's clear that cryptocurrency will play a bigger role in our economy in the future," said Rep. Curtis J. Tarver, II (D-Chicago). " This measure will give consumers in Illinois more peace of mind as they will now know that the state is regulating the sale of these digital assets and currencies.”

Certain consumer protections included in the legislation (such as the refunds for victims of fraud and scams) take effect immediately. Digital asset businesses in Illinois will have until July 1, 2027, to register with IDFPR.

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