Illinois Enacts Crypto Rules, Pritzker Blasts Trump
Illinois Governor JB Pritzker signed two bills strengthening crypto regulation by granting the state’s Department of Financial and Professional Regulation oversight of digital asset exchanges and crypto ATMs. The Digital Assets and Consumer Protection Act (SB 1797) requires firms to maintain financial reserves, implement cybersecurity and anti-fraud protocols, and provide clear disclosures and customer service standards. The Digital Asset Kiosk Act (SB 2319) mandates registration of crypto ATMs, caps fees at 18%, forces full refunds for scam victims and limits daily transactions for new users to $2,500, addressing Illinois’ ranking as fifth in crypto-related fraud losses in 2024. Pritzker criticized the Trump Administration for deregulating the industry and allowing “crypto bros” to shape federal policy, citing the rollback of IRS broker definitions for DeFi platforms. Meanwhile, ex-Senator Sherrod Brown, known for his push for tighter crypto regulation, announced a 2026 Senate bid focusing on workers’ rights and economic fairness. Brown’s return follows his 2024 defeat amid heavy pro-crypto PAC spending. With federal bills like the GENIUS Act on stablecoin regulation pending in Congress, traders should monitor evolving state and federal crypto regulation landscapes for potential market impacts.
Neutral
Illinois’ new crypto regulation enhances consumer safeguards and provides clearer operational standards for exchanges and ATMs, which may bolster investor confidence and reduce fraud risk. Similar past state-level measures, such as New York’s BitLicense, initially slowed market activity but ultimately contributed to more stable and transparent markets. However, as regulations remain fragmented across states and federal policy continues to evolve, the overall impact on the broader US crypto market is likely muted in the short term. In the long run, clearer rules could support healthier market growth, but for now, traders may view this development as broadly neutral.