- The Illinois Department of Financial and Professional Cryptocurrency Regulation has unveiled the Consumer Financial Protection and Innovation Package.
- Lawmakers in Illinois want to ensure that the regulations do not hinder innovation.
Illinois lawmakers are considering a plan to regulate cryptocurrency regulation in the state, hoping to stabilize the market and protect consumers. Cryptocurrencies such as Bitcoin, Ethereum, and stablecoins have gained popularity over the years, with NBC News describing 2021 as a “crypto craze.” However, the unregulated market has resulted in many Americans losing money due to the volatility of digital assets. As a result, lawmakers want to ensure that companies register with the state.
Illinois Balances Regulation and Innovation in the Cryptocurrency Market
State Rep. Mark Walker (D-Arlington Heights) believes that if cryptocurrency products and companies have stability, it will add stability to the entire banking system and prevent bailouts. The Uniform Money Transmission Modernization Act, which is established under the law, calls for the licensing of exchanges and cryptocurrency firms by the Illinois Department of Financial and Professional Regulation.
House Bill 3479 passed the House with a bipartisan 90-21 vote. The bill allows the state to access the books of approved businesses for a digital asset license and pass along relevant information to enforcement agencies. State Rep. Margaret Croke (D-Chicago) believes the bill will not hinder innovation and that there needs to be some sort of level of regulation in the industry to protect consumers.
The unregulated market has led to many scams, with bad actors preying on the vulnerable and the unwary. Rep. Aaron Ortiz (D-Chicago) believes that cryptocurrency has become a new avenue for bad actors to exploit people. He continued by saying that these frauds make great investment returns just to vanish with the money that investors worked so hard to achieve.
Federal Government Involved In Cryptocurrency Regulations
As lawmakers move forward with the plan, they want to ensure that it does not hinder innovation. They believe that as the federal government gets more involved in cryptocurrency regulations, the state will retract and cover smaller entities, similar to how they do with smaller banks and credit unions. Lawmakers are looking into regulations for the digital market.
The Illinois Department of Financial and Professional Regulation (IDFPR) has unveiled the Consumer Financial Protection and Innovation Package, consisting of two legislative initiatives aimed at safeguarding Illinois residents and the larger market for digital assets while also preventing fraud and misuse.
Overall, lawmakers in Illinois are hoping to regulate the cryptocurrency market to ensure consumers are protected and the market is stabilized. The unregulated market has led to many scams, and many Americans have lost money due to the volatility of digital assets. With House Bill 3479 passing the House with bipartisan support, the state is one step closer to regulating the booming industry.