Illinois Governor Pritzker Criticizes Trump’s ‘Crypto Bros’ While Signing New Crypto Laws

Highlights:

• Illinois becomes the first Midwestern state to pass strong crypto laws protecting consumers from scams.
• Governor Pritzker criticizes Trump’s crypto approach and emphasizes safeguards against misleading claims and unsafe platforms.
• New rules require crypto businesses to register, follow security standards, and offer refunds to scam victims.

Illinois has become the first state in the Midwest to pass major crypto laws aimed at protecting consumers from scams and fraud. On Monday, Governor JB Pritzker signed two new bills, the Digital Asset Kiosk Act (SB 2319) and the Digital Assets and Consumer Protection Act (SB 1797). The first law, SB2319, puts strict rules on crypto kiosks.

Operators must register with the state, share their kiosk locations, keep fees below 18%, and give full refunds to new users if they get scammed. The second law lets Illinois regulators watch over crypto businesses, make sure they keep customer assets safe, and require them to use strong security and anti-fraud measures. 

While signing the laws, Governor Pritzker stated that Illinois is choosing a different approach than Washington. He made it clear that the state will not allow scammers to exploit people in the crypto market. IDFPR Secretary Mario Treto Jr. said the new laws are a big win for protecting Illinois residents while also making the crypto market more open and fair. The new rules, including refunds for scam victims, start right away. Crypto businesses in Illinois have until July 1, 2027, to register with the state.

While Trump lets crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers.

Today, I've signed into law first-of-their-kind safeguards in the Midwest for cryptocurrency and other digital assets.

We won't tolerate fraudsters.

— Governor JB Pritzker (@GovPritzker) August 18, 2025

Illinois Governor Questions Trump’s Approach to the Cryptocurrency Market

Pritzker argued that without proper rules, people risk losing money to scams, misleading claims, or unsafe platforms. “While the Trump Administration is letting crypto bros write federal policy, Illinois is implementing common-sense protections for investors and consumers,” he said during the signing. 

He directly criticized former President Donald Trump’s approach to cryptocurrency, claiming it relied too much on industry insiders. They pointed to Trump’s action in April, when he signed a bill canceling an Internal Revenue Service (IRS) rule that would have widened the definition of a broker to cover decentralized finance exchanges.

U.S. States Take Divergent Paths on Crypto Regulation

This move also shows how divided U.S. politics has become over crypto rules. After the Republicans won the election in November, states started taking very different approaches. Republican-led states like Texas and Arizona are openly supporting crypto and pushing for its growth. On the other hand, Democratic-led states like Illinois are being more careful, creating rules and protections for consumers before letting the industry grow further. Earlier this year, Illinois rejected a bill that suggested the state should invest in Bitcoin.

JUST IN: 🇺🇸 Illinois State Representative John Cabello introduces legislation for a Strategic Bitcoin Reserve. pic.twitter.com/NLIcF9vaDg

— Bitcoin Magazine (@BitcoinMagazine) January 29, 2025

Supporters of the new laws say they will help build trust in crypto by making it safer for everyday users. They argue that clear rules will prevent abuse and ensure that only reliable companies can operate in the state. Critics, however, warn that too much regulation could slow down innovation and make Illinois less attractive to crypto businesses compared to states with looser rules.