Illinois has decided to establish a regulatory framework for cryptocurrency by promoting two historic consumer protection invoices, following an increase in concerns concerning fraud and market vulnerabilities. Governor JB Pritzker has signed the Digital Assets and Consumer Protection Act (SB1797) and the Digital Asset Kiosk Act (SB2319) on August 18, 2025, marking the first legislation of this type in the Midwest to protect consumers from digital assets. Invoices are intended to provide transparency and responsibility for rapidly growing but largely unregulated space, which has left many residents vulnerable to scams.
According to the FBI, Illinoisans lost $ 272 million in the event of fraud linked to cryptocurrency in 2024, the highest total in state history and the highest fifth in the United States, the new legislation grants the Department of Financial and Professional Regulation of IDFPR (IDFPR). This includes the application of cybersecurity and anti-fraud measures, the maintenance of adequate financial resources and the guarantee of disclosure and customer service standards reflect those of traditional financial institutions (1). This decision is aligned with the broader efforts of the state to protect consumers in the midst of what Governor Pritzker described as a “federal erosion of consumer protections”.
Digital Asset Kiosk Act (SB2319) has specific consumer guarantees for users of cryptocurrency kiosks, who have become common entry points for new investors. Under the law, kiosk operators must register with the IDFPR, disclose key information and provide complete reimbursements to the victims of scams. The law also caps transaction costs to 18% and limits daily transactions for new users to $ 2,500, aimed at preventing the execution of significant and potentially risky transactions without adequate consciousness (2). These measures should reduce the frequency and severity of fraud in cryptographic kiosks, a sector that has attracted both innovation and exploitation.
The legislation includes exemptions from technological development in order to support innovation in Illinois, reflecting the double concentration of the State on the protection and growth of the space of digital assets. Legislators such as Senator Mark Walker (D-Arlington Heights) have stressed that bills promote a safer and confidence environment for startups and entrepreneurs while ensuring that consumers’ interests remain central. The state approach contrasts strongly with the federal position of the Trump administration, which was criticized for having reduced the surveillance of the cryptographic industry, including the abolition of the authority of the IRS to regulate decentralized exchanges (1).
The implementation of new laws will be progressive. Certain consumer protections, such as reimbursements linked to the scam, take effect immediately, while digital asset companies have until July 1, 2027, to fully comply with the registration and operational requirements. Legislation represents a strategic effort to balance innovation with responsibility, ensuring that Illinois remains competitive in the evolving digital economy while prioritizing the safety of financial assets of its residents (2).
Source: (1) Governor Pritzker signs historical legislation to protect consumers ((2) The governor of the Illinois slap of Trump “ crypto bros ” signs two new crypto invoices (
