Critics say feds should regulate crypto, not states, as Illinois bill
advances
[June 05, 2025]
By Greg Bishop | The Center Square
(The Center Square) – Illinois government officials will be tasked with
regulating the digital currency industry with a measure ready to be sent
to the governor’s desk.
Before adjourning spring session, the legislature approved Senate Bill
1797. State Rep. Edgar González, Jr., said the measure ensures
regulations apply to financial product providers, not blockchain
innovation. He said most everyone has become neutral.
State Rep. Dan Ugaste, R-Geneva, shared concerns some have with the
bill.
“Most of the groups that are even neutral would rather have the federal
government regulating this, as it's my understanding that they're moving
there,” Ugaste said on the House floor last month. “And I believe this
is better regulated on a national level and that [the Illinois
Department of Financial and Professional Regulation], which is still
having issues getting to things, doesn't need any more work to do.”
Andrew Gordon with Main Street Crypto PAC understood concerns
legislators have with financial scams stemming from digital currencies,
but regulations should be uniform across the board.
“So there certainly needs to be regulations,” Gordon told The Center
Square. “But at the same time, we need to make sure that they are
consistent and that, across different states and federally, that it
makes sense.”
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Gordon said while digital currencies have been around for 15 years,
they’re still in their infancy and there’s incredible growth ahead.
“Adoption is in its infancy and there's a lot of opportunity for
growth and for individuals, Main Street America, the people
listening to this, to actually prosper,” Gordon said. “And we need
to make sure that these scare tactics are not used just to implement
regulations that allow … the Wall Street titans to benefit from it.”
Before approving the measure requiring the Illinois Department of
Financial and Professional Regulation provide regulations on digital
currency companies, state Sen. Mark Walker, D-Arlington Heights,
acknowledged digital asset broker Coinbase was an opponent.
“They are in favor of a federal solution, do not believe we should
have a state level solution,” Walker said on the Senate floor. “They
are a good actor in this industry. We're not going to move them
relative to this bill.”
Senate Bill 1797 requires digital asset businesses to register with
the state and to provide disclosures to consumers. The measure can
now be sent to Gov. J.B. Pritzker.
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