Illinois State Senator&#039, s Bill Seeks to Claw Again$ 163 Million Lost to Crypto Fraud

With thousands lost to crypto scam in Illinois, a fresh bill aims to strengthen regulations in the online resource area.

On Thursday, the Illinois Senate Executive Committee passed Senate Bill 1797, the Digital Assets and Consumer Protection Act, which seeks to manage online resource businesses within the position.

The bill, first introduced in February by State Sen. Mark Walker (D-Arlington Heights ), aims to address the mounting problem of crypto fraud, which led to over$ 163 million in losses in Illinois alone in 2023, as per a Thursday statement.

” The fall of digital assets has opened the door for economic option, but also for debt, fraud, and false practices”, Walker said, adding that,” We has established standards for those who have evolved in the crypto business to ensure they are reliable, trustworthy actors”.

The costs, which passed in an 8-4 voting, then moves to the full Senate for attention. If approved, it will continue to the House of Representatives for further consideration before being sent to Governor J. B. Pritzker for final approval.

The legislation designates the Illinois Department of Financial and Professional Regulation ( IDFPR ) as the primary regulatory body overseeing the activities of digital asset companies.

For companies may be required to file with IDFPR, providing essential disclosures and demonstrating their financial security to ensure customer safety

A key delivery of the expenses mandates that companies adopt safeguards for client assets to avoid fraud and mishandling.

Since its launch in February, some state lawmakers after added their aid as co-sponsors to SB1797: Sen. Karina Villa on March 18, Sen. Rachel Ventura on March 19, and Sen. Michael Hastings, Linda Holmes, and Christopher Belt on March 20.

Illinois and crypto

With this new force, Illinois is taking stringent steps to ensure the state’s buyers are protected in the crypto area.

In February, Sen. Dick Durbin introduced the Crypto ATM Fraud Prevention Act to defend buyers, especially seniors, from scams involving bitcoin ATMs.

The costs would uphold exchange parameters and require providers to give refunds to victims who report scam within 30 days.

However, on the federal level, House Financial Services Committee Chair French Hill (R-AR ) recently said that the private blockchain relations of President Donald Trump and his household have complicated the drafting of legislation for the crypto industry.