Gov. JB Pritzker proposed a crackdown on cryptocurrency ATMs during Wednesday’s State of the State address — a move his administration says will help address the scamming and money-laundering that have become pervasive in the industry.
The legislation would establish a daily limit for transactions on crypto ATMs, cap fees to “prevent predatory charges” and require receipts showing the dollar value of digital assets and any fees collected, according to a fact sheet provided by Pritzker’s administration.
“When left unregulated, crypto kiosks are often used as tools for scams that victimize the most vulnerable Illinoisans,” Pritzker said in a statement. “Those who are harmed by these scams have little or no ability to seek restitution or justice because of the unrestricted nature of these ATMs. In addition, the ATMs are a common tool in laundering money for drug transactions and other illegal activities.”
The Sun-Times reported in January that Chicago had become a hub for crypto ATMs. The U.S. Drug Enforcement Administration notes in a recent report that Illinois has roughly 1,626 crypto ATMs, including 1,167 in Chicago, warning that such devices draw people from outside the state and are often used for illicit purposes.
A smoke shop in Irving Park displays signage for a bitcoin ATM inside.
Anthony Vazquez/Sun-Times file
Illinois lawmakers proposed legislation last year that would have forced crypto ATM operators to register kiosks with the state and cap usage fees that are often exorbitant. But the legislation died in the state Senate without getting voted on.
Pritzker said his proposal “would institute the same common-sense registration and regulation requirements that already exist for financial institutions across the state.
“If passed into law, we can stop the flow of crime through these kiosks and better protect Illinois communities, while still allowing legitimate crypto users to conduct transactions as they have been doing,” he added.
Pritzker also announced broader legislation that would “establish regulatory oversight of cryptocurrency companies to protect consumers and investors, similar to the regulations that already apply to more than 3,200 Illinois banks, credit unions and other traditional financial services firms.”
That bill includes a range of safeguards, including disclosures on fees and charges and supervision of “risks posed by cyber threats, fraud and money-laundering.”
Meanwhile, President Donald Trump’s administration is taking a softer approach to policing a burgeoning industry in which Trump and his family are personally invested.
An executive order Trump signed days after re-taking the Oval Office last month aims “to support the responsible growth and use of digital assets, blockchain technology and related technologies across all sectors of the economy.”
The edict, which came amid a flurry of executive orders signed by Trump, notably rolls back directives instituted under his predecessor, Joe Biden. Trump’s order, signed Jan. 23, empowers a working group of administration officials to “recommend regulatory and legislative proposals” that advance Trump’s crypto-related policy goals.
The working group — which includes Attorney General Pam Bondi and Treasury Secretary Scott Bessent, among other officials — is tasked with proposing a “regulatory framework governing the issuance and operation of digital assets.”