Illinois Governor JB Pritzker recently took a jab at President Donald Trump for his handling of crypto regulations, accusing him of allowing “crypto bros” to shape federal policy. Pritzker highlighted the importance of protecting investors and consumers in the crypto space, contrasting Trump’s approach with Illinois’ commitment to implementing structured regulations.
Pritzker’s criticism of Trump coincided with the enactment of two significant laws in Illinois aimed at regulating digital assets. The Digital Assets and Consumer Protection Act (SB1797) grants the Department of Financial and Professional Regulation (DFPR) the authority to oversee digital asset businesses in the state. This law sets operational standards for areas such as customer protections, custody of digital assets, registration, compliance, supervision, and enforcement procedures. It also provides the DFPR with rulemaking authority and outlines procedures for addressing violations.
The second law, the Digital Asset Kiosk Act (SB2319), specifically targets crypto ATMs. Operators are now required to provide customers with transaction receipts, disclose terms, maintain live customer service, and implement robust anti-fraud measures. Additional requirements include enhanced due diligence, compliance policies, the use of blockchain analytics to prevent illicit transactions, and the designation of compliance and consumer protection officers. Operators must also report kiosk locations quarterly and obtain a money transmitter license.
Despite the regulatory progress made in Illinois, Pritzker’s comments on Trump’s approach to crypto regulation faced criticism from key industry stakeholders. Coinbase Chief Policy Officer Faryar Shirzad questioned the governor’s characterization of federal lawmakers as “crypto bros,” pointing out the support from many House and Senate Democrats for crypto legislation like the GENIUS and CLARITY Acts.
Coinbase Chief Legal Officer Paul Grewal also weighed in, calling Pritzker’s remarks “uninformed” and highlighting the contributions of respected Democratic lawmakers to the legislation in question. Austin Campbell, founder of Zero Knowledge Group, emphasized that the GENIUS Act builds on financial reforms initiated by regulatory bodies like the Federal Reserve and CFTC post-2008 crisis, indicating a long-term regulatory strategy rather than insider influence.
Overall, Governor Pritzker’s push for structured regulations in the crypto space reflects Illinois’ commitment to safeguarding investors and consumers, despite facing criticism from some industry leaders. The enactment of these landmark laws sets a precedent for other states to follow suit in regulating digital assets effectively.