Illinois Enacts SB 1797 & SB 2319 to Boost Crypto Regulation
On August 18, Illinois Governor JB Pritzker signed SB 1797 and SB 2319 to boost crypto regulation and protect consumers. SB 1797 empowers the Illinois Department of Financial and Professional Regulation to oversee digital asset exchanges, enforcing capital, cybersecurity, anti-fraud, disclosure, and customer service requirements. SB 2319 extends crypto regulation to kiosks and ATMs, mandating operator registration, full refunds for verified scams, capping fees at 18%, and setting a $2,500 daily limit. The move follows FBI data showing Illinois lost $272 million to crypto fraud in 2024, ranking fifth nationwide. Pritzker contrasted Illinois’ proactive regulations with federal rollbacks under the Trump administration, accusing “crypto bros” of eroding investor safeguards. These landmark measures aim to curb scams, clarify compliance, and enhance market integrity, potentially shaping other states’ digital asset policies.
Bullish
By imposing clear rules on digital asset exchanges and ATMs, the legislation reduces fraud risks and enhances consumer protections, which can boost trader confidence and promote higher trading volumes. In the short term, compliance costs may marginally increase operational expenses for service providers, but the stronger regulatory framework is likely to foster institutional participation and market stability over the long term, supporting a bullish outlook for the crypto market.