Illinois Senate Moves a Bill Forward That Aims to Regulate All Cryptocurrency Businesses Within the State

The Illinois Senate moved a bill forward that aims to regulate all cryptocurrency businesses within the state and stop digital asset fraud that is rising across the state.

The Illinois Senate Executive Committee moved forward a bill that aims to regulate all cryptocurrency businesses within the state and stop digital asset fraud that is rising across the state.

The committee’s approval of the law comes as a defense measure against cryptocurrency scams that defrauded Illinois residents out of $163 million in 2023.

State Senator Mark Walker introduced SB 1797, or the Digital Assets and Consumer Protection Act, during February 2023. The bill seeks to strengthen state regulations for digital platforms and protect consumers from fraud.

Many Illinois legislators, including Karina Villa, Rachel Ventura, and Mike Porfirio, showed support for the bill.

“Cryptocurrencies bring wealth to some, but they also bankrupt others through fraudulent activities,” said Senator Walker. “This law is about setting rules that enable crypto businesses to operate their activities openly and reliably.”

Senator Walker wants to establish rules for crypto businesses and adults to prove they do business fairly and honestly.

Bill Advances To Full Illinois Senate Review

The Illinois Department of Financial and Professional Regulation (IDFPR) would regulate all crypto businesses in the state based on new legislation.

SB1797 grants the IDFPR full authority to maintain business registration from start to finish and issue financial penalties to businesses that break the rules. The legislation aims to protect consumers and promote responsible innovation in the crypto industry.

It requires businesses to register with the IDFPR, provide financial disclosures, ensure customer payouts, and notify consumers about charges or transfers. Companies have until January 2027 to comply with all provisions.

The legislation demands crypto companies set up measures to prevent fraud in their operations. The law works to defend buyers by stopping digital asset swindlers who are becoming more active in crimes.

Following its approval by the Senate Executive Committee, the bill advances to the entire Senate for formal evaluation. SB1797 can show other states how to best handle the growing cryptocurrency market.

Illinois Moves to Include Bitcoin In Financial Sector

During the same period, Illinois advanced its efforts to include Bitcoin into its financial sector. On January 1, State Representative John Cabello presented House Bill 1844 to the Illinois state legislature for establishing a Bitcoin reserve under state control.

The Illinois treasurer’s office would oversee this special financial fund that stores Bitcoin assets.

The legislation provides ways for both citizens and government bodies in Illinois to donate Bitcoin to a special fund. The fund will not allow Bitcoin withdrawals until the Bitcoin remains held for five years. The law requires state officials to submit reports every two years about Bitcoin assets in the fund and all activity related to the cryptocurrency.

The progress of HB1844 stopped soon after its debut in January 2019 while it waits for the House Rules Committee to assess the proposal.

The Illinois government works to legislate Bitcoin while setting up reserve funds because of its growing understanding that crypto needs regulatory controls in light of its fast development and widespread fraud. These legislation results will create a valuable example for other states working with digital assets.