The Illinois Senate has passed Senate Bill 1797, also known as the Digital Assets and Consumer Protection Act, aimed at regulating cryptocurrency firms and protecting investors from fraud. The bill passed with a vote of 39 to 17 on April 10, 2025, and grants the Illinois Department of Financial and Professional Regulation the authority to oversee digital asset activities in the state. Any entity engaging in cryptocurrency business with Illinois residents must now register with the state’s financial regulator and is required to provide full disclosure of user fees. Senator Mark Walker, the bill's sponsor, emphasized the need for standards to combat the increasing incidence of crypto-related fraud, particularly following recent memecoin scams and collapses that resulted in massive investor losses. The urgency for the legislation stems from high-profile cases such as the collapse of the Libra token, which saw a drastic price drop and significant losses for investors, underscoring the necessity of regulatory measures to protect consumers from scams and deceptive practices in the crypto market.

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