The state of Illinois has introduced the first comprehensive laws in the region aimed at regulating the activities of cryptocurrency exchanges and ATMs. The main goal of these innovations is to enhance the protection of digital asset users, limit ATM fees, and establish stricter cybersecurity requirements.
This is reported by Business • Media
New Laws: Key Points of SB1797 and SB2319
Illinois Governor J.B. Pritzker has signed two key bills — the “Digital Assets and Consumer Protection Act” (SB1797) and the “Digital ATM Act” (SB2319). From now on, the Illinois Department of Financial and Professional Regulation (IDFPR) will have the authority to oversee cryptocurrency exchanges, other digital asset companies, and ATM operators.
SB1797 requires companies dealing with digital assets to have sufficient financial backing, implement fraud prevention, anti-money laundering, and cybersecurity programs. The new user protection standards are approaching the level of traditional financial institutions: there will be mandatory disclosure of investment risks, safeguarding of client assets, and a requirement to provide minimum service.
SB2319 imposes strict requirements on ATM operators. They must register with the IDFPR, report the locations of their devices, limit fees to 18%, and set a daily limit for new customers of up to $2500. Immediate compensation for losses incurred by victims of fraudulent schemes is also mandated.
“While the Trump administration allows the ‘crypto brothers’ to write federal policy, Illinois is implementing healthy and clear rules to protect investors and consumers,” said Governor Pritzker.
Impact of New Rules on the Market and Residents of Illinois
Throughout 2024, residents of Illinois lost over $272 million due to cryptocurrency fraud, making this type of crime the most prevalent in the state. The new legislation aims to significantly reduce these risks and ensure transparency in the digital asset market.
IDFPR Secretary Mario Treto Jr. emphasized the importance of these initiatives for user safety:
“These initiatives modernize consumer protection and implement guarantees for all residents of Illinois who use digital asset services. This is a monumental victory that prioritizes people’s safety while paving the way for a more transparent and accessible market,” said IDFPR Secretary Mario Treto Jr.
Certain provisions, including mandatory business registration, will come into effect by July 1, 2027. Additionally, neighboring states, such as Wisconsin, are also working on strengthening oversight of ATM operations. In contrast, in Spokane, Washington, ATMs have even been completely banned due to the rise in fraud cases.